Valentino holders Kering, Mayhoola mull possible sale: Corriere

Valentino holders Kering, Mayhoola mull possible sale: Corriere

Italian fashion house Valentino, co-owned by Kering and Qatar-based investment fund Mayhoola, is reportedly under consideration for a potential sale, according to a report by Corriere della Sera. The report suggests that the decision is part of a broader portfolio review by Kering, which is facing rising debt and softening global demand for high-end fashion.

In 2023, Kering acquired a 30% stake in Valentino for $1.7 billion, with a commitment to purchase the remaining 70% by 2028. The acquisition was intended to establish a second flagship brand alongside Gucci, rooted in couture heritage. However, the timing of the acquisition came just before the global luxury slowdown, and the deal has since become a topic of concern for investors.

Kering's latest annual report estimated that fully executing the Valentino transaction, which could come as early as 2026 if Mayhoola exercises put options, would cost the group €4 billion ($4.64 billion). Kering shares, which have dropped more than 60% in value over the last two years, initially climbed by 2.5% following the Corriere article but lost momentum after Mayhoola's denial.

Valentino itself has also been in the spotlight. Its CEO, Jacopo Venturini, was recently placed on medical leave, and its handbag division, Valentino Bags Lab Srl, was placed under court administration due to labor violations identified in its supply chain. In 2023, the company appointed Alessandro Michele as creative director, following the departure of long-time designer Pierpaolo Piccioli. That same year, the fashion house reported a 2% decline in revenue at constant exchange rates, totaling €1.31 billion ($1.52 billion).

Kering's newly appointed chief executive, Luca de Meo, is expected to take charge of the situation after officially starting on September 15. The newspaper noted that Kering declined to comment, and Mayhoola did not respond to a request for comment.

References:

[1] https://us.fashionnetwork.com/news/Mayhoola-denies-speculation-of-possible-valentino-sale-with-kering,1750365.html
[2] https://ca.fashionnetwork.com/news/Valentino-sale-under-consideration-by-kering-and-mayhoola,1750365.html
[3] https://finance.yahoo.com/news/kering-qatars-mayhoola-considering-valentino-054129388.html
[4] https://thesun.my/world-news/mayhoola-denies-valentino-sale-talks-with-kering-amid-speculation-FI14497406
[5] https://us.fashionnetwork.com/news/Valentino-sale-under-consideration-by-kering-and-mayhoola,1750365.html
[6] https://www.firstonline.info/en/Valentino-Kering-and-the-Mayhoola-fund-are-evaluating-the-sale-of-the-historic-fashion-house%27s-accounts-and-what-Qatar-says./