French luxury group Kering and Qatari investment company Mayhoola have agreed to amend their shareholders' agreement, initially agreed during Kering's acquisition of a 30% stake in Italian fashion brand Valentino in 2023.
The amendment addresses the framework in the evolution of shareholding in Valentino.
Under the revised agreement, the existing ownership structure of Valentino will remain unchanged until at least 2028.
Mayhoola's put options on Kering for its remaining 70% stake acquisition in Valentino, originally exercisable in 2026 and 2027, have been postponed to 2028 and 2029, respectively.
Kering's call option to acquire Mayhoola's stake, initially set for 2028, has also been deferred to 2029.
All other terms and conditions associated with these options remain the same.
Kering is a global luxury group featuring a portfolio of renowned brands such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga and McQueen. The group also encompasses Kering Eyewear and Kering Beauté.
In 2024, Kering reported a revenue of €17.2bn and had 47,000 employees.
Mayhoola is an investment company under the direct control of Qatari Mayhoola for investments.
The investment company focuses on making investments in the luxury sector. Its current portfolio features a collection of luxury fashion brands, including the Italian couture house Valentino, the French luxury brand Balmain and the Italian label Pal Zileri.
Mayhoola also owns Beymen, a chain of luxury department stores in Turkey.
Kering's commitment to completely acquire Valentino from Mayhoola in the 2023 deal has placed considerable strain on the financially burdened French luxury group.
This updated agreement marks a significant initial step under the leadership of new CEO Luca de Meo, who aims to address the reduction of Kering's €9.5bn ($11.13bn) debt as a priority on his agenda, as reported by Reuters.
Meanwhile, Riccardo Bellini has been appointed as Valentino’s CEO.
In 2024, Valentino's revenue fell 2% at constant exchange rates to €1.3bn, while its earnings before interest, taxation, depreciationn and amortisation dropped 22% to €246m.
