SINGAPORE: Singapore’s Temasek has elevated its stake in Ermenegildo Zegna Group to 10 per cent, the state funding agency stated on Friday (Aug 1).
The funding underscores the corporate’s dedication to help main European firms and household companies with robust monitor information and world potential, stated Temasek.
It added that the Italian firm efficiently established itself within the high-end luxurious phase and “presents vital long-term worth creation alternatives throughout every model”.
“Leveraging our expertise within the luxurious sector and deep information of the Asian market, we’re wanting ahead to partnering the group on its development journey and world enlargement,” stated Temasek.
Below the deal which was anticipated to shut by Jul 30, Temasek will buy 14.1 million Zegna treasury shares at US$8.95 every for US$126.4 million, the businesses stated in a press release.
Added to the 12.7 million shares it beforehand acquired on the open market, that brings Temasek’s complete stake to 10 per cent.
“We stay up for being a considerate, long-term companion to the Zegna household and administration staff, empowering them to execute on their development technique and supporting their imaginative and prescient to raise their iconic manufacturers and world footprint,” stated Nagi Hamiyeh, Temasek’s head of Europe, the Center East and Africa.
Mr Hamiyeh is anticipated to affix Zegna’s board as a non-executive director on the vogue home’s subsequent annual common assembly in June 2026, in keeping with the assertion.
“FERTILE GROUND”
Temasek is exploring funding alternatives in Europe, the place volatility ensuing from US President Donald Trump’s world commerce struggle has made some firms extra engaging on valuation grounds.
One individual accustomed to the transaction instructed Reuters that Temasek noticed “fertile floor” in Zegna, which is more and more open to worldwide buyers.
High-tier luxurious shoppers, these spending over €50,000 (US$57,660) yearly, proceed to spend regardless of world financial uncertainty.
Although lower than 1 per cent of the market, they account for 23 per cent of business worth, in keeping with a report from the Boston Consulting Group. Their spending has remained regular whilst aspirational consumers pull again.
Proceeds from the transaction will likely be used to strengthen Zegna’s stability sheet and help enlargement into new markets, significantly in Asia, the place Temasek’s regional experience is anticipated to play an necessary function, the assertion learn.
“With Temasek’s partnership, we’re even higher positioned to assist strengthen our natural enlargement globally,” Zegna Chairman and CEO Ermenegildo “Gildo” Zegna stated.
