Armani heirs favour a stock market listing over a sale as talks open on 15% stake

The family now controlling the Armani fashion empire, which passed to them after the designer's death at the age of 91, has begun approaching potential industry buyers for a minority holding. Their longer-term preference, however, is to see the company listed on the stock exchange rather than sold wholesale to a large competitor.

Giorgio Armani's will requires the heirs to place about 15% of the business with investors between 12 and 18 months after his death, with an initial transaction expected by March 2027. A second stage would then involve the disposal of a further 30% to 54.9% stake, or a bourse listing as an alternative route.

Bankers and advisers put a valuation on the group of €5 billion to €7 billion, a range that would make any eventual sale or flotation one of the luxury industry's largest transactions in the past decade.

The will names long-standing licensing partners L'Oréal and eyewear maker EssilorLuxottica, along with luxury group LVMH, as preferred buyers, while leaving room for other industry players of what it describes as equal standing.

People familiar with the situation indicate the Italian house faces no financial pressure to move quickly. Discussions with industry players are nonetheless under way for the first 15% tranche, and the heirs are inclined to divide that initial stake between two or more buyers rather than hand it to a single investor.