Permira unit Red & Black Lux Sarl said it intends to make a bid for Valentino Fashion Group SpA shares at 35 eur each after reaching an agreement with the Marzotto family.
Earlier today, Permira acquired a 10.83 pct stake in Valentino from the Marzotto family at the same 35 eur per share price, adding to the 29.6 pct it acquired in May from International Capital Growth.
Permira said it is buying the stakes and making the offer on Valentino, and for its quoted German unit Hugo Boss AG, because of their “very well-known brands” and their “big potential in luxury goods market”.
“Permira, in addition, values positively the capacity of management to reach ambitious expansion targets and for organic growth in all the countries where Valentino and Hugo Boss are present,” it said.
The bid is planned to start by end of July and finish by end-September. Permira intends to revoke the bourse listing for Valentino's shares.
As part of the deal to sell its 10.83 pct stake to Red & Black, Paolo Marzotto's company PFC srl will take a minority stake in Red & Black Topco Sarl, which owns 100 pct of Red & Black Lux Sarl (R&B), it said.
In addition, R&B said it reached an agreement with Tidus srl, a company owned by Marzotto family members Gaetano, Stefano, Nicolo and Luca, which will issue a bond convertible into a 12.4 pct Valentino stake.
Tidus will also take a minority stake in Red & Black Topco, it said.
PFC and Tidus will own about 25 pct of Red & Black Topco and will set up an agreement with its shareholders, it said.
The bid on Valentino shares is subject to antitrust clearance by the EU, the US, Ukraine, Japan, and other countries, it said.