The heirs of late fashion designer Giorgio Armani favour an eventual initial public offering (IPO) rather than a sale as they seek buyers for a minority stake in the Italian fashion group, reported Reuters.
Armani, who passed away last year, stated in his will that his heirs should sell around 15% of the company within 12 to 18 months of his death.
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The will subsequently requires either the sale of a further 30% to 54.9% holding or a stock market listing.
Bankers and advisers consulted by the publication valued the Armani group at between €5bn and €7bn.
According to the report, any sale or flotation would rank among the luxury sector’s largest transactions of the past decade.
Armani identified licensing partners L’Oréal and eyewear maker EssilorLuxottica, as well as LVMH, as preferred purchasers in his will.
The document also allowed for other industry players of equal standing.
One source said the group faces no financial pressure to complete a sale quickly.
Discussions with industry players over the initial 15% stake are under way, with the transaction expected by March 2027 to comply with the will’s terms.
The heirs are considering selling the initial stake to two or more buyers, sources cited in the report said.
This would prevent a single strategic investor from becoming the leading prospect for a later transaction and preserve flexibility if the family chooses a listing.
The will stipulates that an IPO should occur within three to eight years of Armani’s death.
The first 15% stake would collectively provide one board seat, although it is not clear how that representation would be assigned if several investors acquire the holding.
According to sources, L’Oréal and EssilorLuxottica are emerging as the most engaged potential investors, as both seek to protect their long-running licensing agreements for Armani fragrances and eyewear.
