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 observe information and world potential, stated Temasek.
It added that the Italian firm efficiently established itself within the high-end luxurious section 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 trying ahead to partnering the group on its development journey and world growth,” stated Temasek.
Beneath 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 an announcement.
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 sit up for being a considerate, long-term associate 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 predicted to affix Zegna’s board as a non-executive director on the trend home’s subsequent annual common assembly in June 2026, in line with the assertion.
“FERTILE GROUND”
Temasek is exploring funding alternatives in Europe, the place volatility ensuing from US President Donald Trump’s global trade war has made some firms extra enticing on valuation grounds.
One particular person accustomed to the transaction instructed Reuters that Temasek noticed “fertile floor” in Zegna, which is more and more open to worldwide traders.
High-tier luxurious customers, 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 line with a report from the Boston Consulting Group. Their spending has remained regular whilst aspirational consumers pull again.
Proceeds from the transaction can be used to strengthen Zegna’s stability sheet and help growth into new markets, significantly in Asia, the place Temasek’s regional experience is predicted to play an essential function, the assertion learn.
“With Temasek’s partnership, we’re even higher positioned to assist strengthen our natural growth globally,” Zegna Chairman and CEO Ermenegildo “Gildo” Zegna stated.
