At Armani's bequest: fashion house prepares to sell its 15% stake - media

Italian fashion house Giorgio Armani is considering selling a 15% stake in the company in three equal installments after the death of designer George Armani, according to Italian newspaper la Repubblica. Its message is quoted by Reuters.

Potential buyers could be the three companies that the fashion designer had pre-selected as preferred buyers of Giorgio Armani's stake after his death, namely French luxury group LVMH, cosmetics manufacturer L'Oréal and eyeglasses, lenses and optics manufacturer EssilorLuxottica.

Giorgio Armani CEO Giuseppe Marsocci, according to la Repubblica, is preparing a business plan and is in the process of appointing two consultants to oversee the deal. The consultants will then present Marsocci's five-year business plan to potential investors. According to the publication, dividing the 15% stake in the fashion house into three equal parts will keep the interest of all three potential buyers at the initial stage of the deal.

An Armani spokesman declined to comment to Reuters on the publication.

Shares of LVMH at trading in Paris on May 11, Ma. fell by 3.2%, L'Oréal securities - by 1.9%, shares of EssilorLuxottica, on the contrary, rose by 0.4%.

Armani passed away last September at the age of 91. In his will, he instructed his heirs to sell 15% of his fashion house within the next 18 months after his passing. Then - within another three to five years - another 30% to 54.9% of Giorgio Armani should be realized. In 2024, the fashion designer admitted that after years of struggle to maintain independence, the fashion house could also go for a merger with a larger competitor or conduct an IPO. Bloomberg writes that the option of the company's going public was also mentioned in Armani's will as an alternative.

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