MILAN, ITALY: Versace is seeking a minority investor and a spokesman at the Italian fashion house says about €250m could be pumped into the luxury brand if the right investor is found.
"The company is in the process of seeking a minority investment to bring in financial resources and accelerate development of the brand," said a spokesman, confirming Italian media reports. Versace is 100% owned by the Versace family.
A source told AFP that Versace hopes to select an investor next month and complete the exercise by the end of this year. It is looking for an investment of around €250m and is offering a stake of between 15% and 20% in the company, valuing it at between €1.2 bn and €1.6bn overall.
Italian daily Il Sole 24 Ore reported that a shortlist of three investors will be established during Milan Fashion Week, which opened on Wednesday (18 September), and that the investment would take the form of a €150m hike in capital and the sale of €50m in existing shares.
It cited among possible candidates Qatar's sovereign wealth fund allied with the Italian Strategic Fund, Italy's state-backed sovereign fund. The company refused to speculate on possible investors.
Versace was founded in 1978 by Gianni Versace. Following Gianni's 1997 murder at his Miami Beach mansion his sister Donatella took over as head of design.
Source: AFP via I-Net Bridge