State-backed Fondo Strategico Italiano values Versace at EUR1.1 billion

December 4
8:06 PM 2013

Italy's state-backed fund Fondo Strategico Italliano (FSI) is reportedly willing to put in an offer valuing Versace at EUR1.1 billion (USD1.5 billion). FSI is one of the bidders for the minority stake in the Italian fashion house.

According to Reuters, Versace is selling a stake of around 20% ahead of a possible market listing in three to five years. Proceeds from the sale will be used to invest in new shops to take advantage of growing investor appetite for luxury goods. 

Sources told Reuters that FSI is very keen to secure the Versace deal. Its current valuation comes at the high end of what analysts say the fashion house may be worth. 

Versace president Santo Versace last week expressed hopes a new investor could emerge by Christmas. The fashion company was looking at a valuation of at least EUR1 billion from the stake, the report said. 

Reuters, citing sources, however said that the bidding process for Versace was still very open and that the whole process would likely drag on into January and February. 

Qatar is not involved in the takeover deal. The Qatar royal family and Qatar Holding LLC had been previously mentioned in the Italian media as possible bidders for Versace in partnership with the FSI, the report said.

Another source told Reuters that private equity firm Permira is also growing less interested in the Versace holding.  

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