Italian fashion house Versace is looking to sell a stake of up to 20 per cent to help it fund growth in a deal that would value the group at more than 1.2 billion euros (HK$12.4 billion), a source with knowledge of the matter said on Wednesday.
“The stake should be around 15-20 per cent and will be sold to a financial, not industrial, partner,” the source told Reuters, adding the aim was to complete the deal by the end of the year.
The source, speaking on condition of anonymity, said the stake would be sold through a reserved capital increase of around 250 million euros.
Versace declined to comment.
The fashion house, whose glittering gowns are worn by stars such as Lady Gaga and Madonna, hired investment banks Goldman Sachs and Intesa Sanpaolo’s Banca Imi as advisers in May last year, fuelling speculation of a sale.
Versace is seeking to strengthen its balance sheet to help fund expansion in overseas markets such as Asia ahead of a possible listing further down the road.