Giorgio Armani's will says his brand should be sold or seek IPO

"The fashion designer, who died last week at the age of 91, has said in his will that he wants his heirs to sell a 15% stake in the business within 18 months. And three to five years after that he has instructed that an additional 30% to 54.9% stake be sold to the same buyer, according to a copy of the will reported on by Reuters."

"The will also says that an initial public offering could be pursued as an alternative. It says priority should be given to the luxury business LVMH, which is controlled by France's richest man, Bernard Arnault, the beauty firm L'Oreal or the eyewear company EssilorLuxottica, a commercial partner of Armani. Armani stated his heirs should also consider other fashion and luxury companies in which Giorgio Armani has commercial ties."

Giorgio Armani's will requires his heirs to sell a 15% stake in Giorgio Armani SpA within 18 months and directs that, three to five years later, an additional 30% to 54.9% be sold to the same buyer, with an initial public offering as an alternative. Priority buyers named include LVMH, L'Oreal and EssilorLuxottica, while heirs should also consider other fashion and luxury companies with commercial ties. Armani was sole major shareholder, kept tight managerial and creative control, and valued brand independence. The group made 2.3bn in revenues last year and spans hotels, restaurants, cosmetics and lifestyle ventures. Succession is to be gradual and organic, transitioning responsibilities to close collaborators and family.

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