SINGAPORE: Singapore’s Temasek has elevated its stake in Ermenegildo Zegna Group to 10 per cent, the state funding agency mentioned on Friday (Aug 1).
The funding underscores the corporate’s dedication to assist main European firms and household companies with sturdy observe information and world potential, mentioned Temasek.
It added that the Italian firm efficiently established itself within the high-end luxurious phase and “presents important long-term worth creation alternatives throughout every model”.
“Leveraging our expertise within the luxurious sector and deep data of the Asian market, we’re trying ahead to partnering the group on its progress journey and world growth,” mentioned 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 mentioned 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 look ahead to being a considerate, long-term companion to the Zegna household and administration crew, empowering them to execute on their progress technique and supporting their imaginative and prescient to raise their iconic manufacturers and world footprint,” mentioned 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, based on 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 engaging on valuation grounds.
One particular person conversant in the transaction advised Reuters that Temasek noticed “fertile floor” in Zegna, which is more and more open to worldwide buyers.
Prime-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, based on a report from the Boston Consulting Group. Their spending has remained regular at the same time as aspirational consumers pull again.
Proceeds from the transaction might be used to strengthen Zegna’s stability sheet and assist growth into new markets, notably in Asia, the place Temasek’s regional experience is predicted to play an vital 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 mentioned.
