|Versace sells stake to Blackstone with Macau luxury hotel project in hand
Italian family-run fashion house Versace, which is set to open a luxury hotel in Macau’s Cotai Strip in 2017, said it had agreed to sell a 20-percent stake to US private equity firm Blackstone Group in a deal that values the group at 1 billion euros.
In September last year, Versace Chief Executive Officer Gian Giacomo Ferraris said in Macau the company had decided to sell a minority stake before an initial public offering.
Versace is joining Macau's dominant casino operator SJM to open a Palazzo Versace hotel in Cotai. Versace has a hand in the design of the property, its first in Asia.
Versace said in a statement today that Blackstone would inject 150 million euros of fresh capital and will also buy 60 million euros' worth of shares from the family holding comipany, Givi.
Versace said the family would remain “at the heart of the company,’’ founded by the flamboyant late fashion designer Gianni Versace in the 1970s.
The Milan-based fashion label is 30 percent owned by Gianni's brother Santo, who is the chairman, 20 percent by his sister Donatella, the creative director, and 50 percent by her daughter Allegra.
“This investment in the company, together with our clear direction and our outstanding management team, will enable us to achieve Versace's potential,'' Donatella Versace said in the statement.
Versace also said it would release its 2013 results next month and expected to announce an 18 percent increase in revenues to 480 million euros.—AFP/The Standard