FT: Armani ready to sell shares of LVMH, L’Oreal and EssilorLuxottica

Fashion house Armani is preparing official talks with French LVMH, L’Oreal and Franco-Italian eyewear manufacturer EssilorLuxottica on the sale of a minority stake in them. This is reported by the Financial Times (FT) with reference to sources familiar with the situation. According to the newspaper, negotiations may take place in the coming weeks.

The company's founder, fashion designer Giorgio Armani, died last September at the age of 91. In his will, he instructed the heirs to sell 15% of the shares within a year and a half to a large luxury holding, which in another five years will be able to receive a controlling stake. Mr. Armani listed EssilorLuxottica, L’Oréal and LVMH, in his opinion, suitable for the role of the new owner of the fashion house.

According to FT sources, none of these companies wants to make major investments in the near future, but they do not want to miss the opportunity to participate in the share of Armani. In this regard, one of the options discussed involves splitting the package between the three applicants.

It is noted that the main problem in the negotiations may be disagreements between the parties in the evaluation of the company. The heirs name the amount of about €10 billion, and potential investors - from €3 billion to €7 billion. As stated, if there are no buyers for the share in Armani, the heirs will consider the option of bringing the company to the exchange.

Ekaterina Naumova