The French luxury goods group Kering and the Qatari investment company Mayhoola have agreed on a capital increase of 100 million euros for the subsidiary Valentino. This is intended to strengthen the finances of the Italian fashion house after it failed to comply with the loan agreements of a financing negotiated with a consortium of banks.
This emerges from the minutes of the shareholders’ meeting of the holding company Mfi Luxury, as reported by the Teleborsa news agency. Mayhoola holds 70 percent of the shares in this holding, while Kering owns the remaining 30 percent.
According to Teleborsa, the transaction will take place in two phases. An initial payment of 40 million euros is planned, followed by a second capital injection of 60 million euros by the end of 2025.
Kering acquired the stake in Valentino in 2023 for 1.7 billion euros, with the option to take over the brand completely from Mayhoola at a later date.
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