Temasek to buy 5% stake in Ermenegildo Zegna
The shares will come from Temasek's treasury shares, and, combined with its share purchases on the open market, will bring the Singapore investment company's stake to 10 per cent after the transaction is completed on Jul 30. The cash consideration will add to Ermenegildo Zegna's balance sheet and enable the company to seize selected opportunities for organic growth of its brand portfolio.
Ermenegildo 'Gildo' Zegna, chairman and chief executive officer of the group, said: 'This investment is a strong endorsement of our vision and long-term growth potential, while firmly recognising the global significance of the Italian luxury sector.'
Nagi Hamiyeh, head of Europe, Middle East and Africa for Temasek, is expected to join Ermenegildo Zegna's board of directors in June 2026.
The company's customer base comprises high-net-worth individuals (HNWI) who have been more resilient in their spending. A BCG report noted that this segment spends more than 50,000 euros (S$74,380) a year on luxury brands; the wealthiest top-tier clients comprise just 1 per cent of the personal luxury goods market, but generate 22 per cent of the value.
Aspiration consumers, which make up 60 per cent of the market, have faltered in recent years, but the big spenders have consistently grown their expenditure. The segment is set to grow from about 940,000 HNWIs, holding about 68 trillion euros in wealth in 2024, to about 1.4 million HNWIs in 2030, with about 100 trillion euros in wealth.
This group is also growing in confidence. Half of them say they expect to increase spending by between 5 and 25 per cent over the next 18 months.
Temasek will bring its experience in the luxury sector and knowledge of the Asian market to Ermenegildo Zegna under this deal. The investor will also support expansion in key geographies where the company's presence is underdeveloped.
Hamiyeh added: 'Our investment in them underscores our ongoing commitment to support leading European businesses with strong track records and global potential.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
19 minutes ago
- Business Times
Miu Miu growth helps Prada to defy luxury downturn
[MILAN] Prada reported a 9 per cent increase in first half net revenues at constant currencies on Wednesday (Jul 30), with its smaller but fast expanding Miu Miu brand helping it to buck a weak sector trend. Net revenue at the family-owned group, which will soon include Versace after a US$1.4 billion takeover, totalled 2.74 billion euros (S$4.1 billion), broadly in line with a Visible Alpha analysts' consensus, with growth supported by all regions. However, retail sales at the Prada brand fell 3.6 per cent in the second quarter alone, while they rose 40 per cent at the Miu Miu label which last year accounted for a quarter of the group's total revenues. The second quarter was impacted by lower tourist flows into Europe and Japan and an unfavourable comparison with last year, Prada's managers said in a post-results conference call. Chief executive Andrea Guerra told analysts that he expected tourist traffic to recover to last year's levels at the end of August. Last month the Italian company parted ways with Prada's brand CEO Gianfranco D'Attis. Guerra has taken on the additional responsibilities for now and plans to keep them for the time being. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up 'If it is an interim (arrangement), it's a long one,' he said. Tough times for luxury The group's adjusted operating profit rose 8 per cent to 619 million euros in the six months, below the 636 million euro operating Ebit seen in an analyst consensus provided by Visible Alpha. 'This healthy performance was achieved against a challenging backdrop, somewhat unprecedented in our industry,' said Prada chairman Patrizio Bertelli in a statement. The group expects the completion of the Versace acquisition from Capri Holdings between September and November this year. A recovery for the luxury industry remains elusive. Gucci owner Kering posted a 15 per cent drop in quarterly revenues, LVMH saw a 4 per cent decline in quarterly sales and even Hermes, despite a 9 per cent sales increase, showed signs it is not totally immune to a wider luxury downturn. REUTERS
Business Times
an hour ago
- Business Times
Local startup MetaOptics Technologies lodges preliminary prospectus for Catalist IPO
[SINGAPORE] MetaOptics Technologies , a Singapore-headquartered semiconductor optics startup, on Wednesday (Jul 30) lodged its preliminary prospectus for a listing on the Singapore Exchange's Catalist board. It could become the third company to list on the Catalist board this year, following the debut of urban revitalisation specialist Lum Chang Creations on Jul 21, and the preliminary prospectus filing by design-and-build firm Dezign Format last month. In its offer document, MetaOptics said it is principally engaged in the metalens technology business. It designs and manufactures meta-optics components and products, such as metalenses, metalens camera modules, as well as metalens manufacturing equipment. Metalenses are ultra-thin optical devices with a wide range of applications, including smartphones, wearable displays for augmented and virtual reality, machine vision systems, bio-imaging and endoscopy. Tapping a growing market MetaOptics, which was founded in 2021, said it is the first pure-play metalens company globally to seek a public listing. The proposed listing is managed and sponsored by Zico Capital. The startup intends to use the bulk of the proceeds from the placement share issue for product development, research and development (R&D), as well as strategic partnerships. These include expanding its R&D team and funding the development of rectangular metalenses. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It also plans to expand its business organically and through mergers and acquisitions, joint ventures and strategic alliances. A portion of the proceeds will go towards working capital and general corporate purposes. MetaOptics' proprietary technology includes artificial intelligence (AI) algorithms that enhance the performance of metalens-based imaging systems. It also holds intellectual property rights over direct etching on glass substrates – a breakthrough in fabrication methods, which are conventionally silicon-based. Such innovations could help the company to capitalise on the rapid expansion of the global optical metalens market. It is projected to grow at a compound annual growth rate of 74.8 per cent from 2024 to 2029, with the total market size estimated to reach US$493 million by 2029. Mark Thng, executive chairman and chief executive officer of MetaOptics, said: 'Central to our plan is the miniaturisation of devices and the integration of metalenses across a broad spectrum of smart device applications, including optical sensors, cameras, (AI and smart) glasses, autonomous vehicles', as well as augmented and mixed-reality displays. This would enable 'slimmer, more intelligent, and energy-efficient solutions', he added. To support its growth ambitions and meet client demands, MetaOptics is expanding into key overseas markets, the CEO said. It is also scaling up the deployment of its metalens solutions in the global smart device industry. For FY2024, MetaOptics posted a net loss of S$2.3 million on a revenue of S$79,440. The company noted limited revenue generation at its current stage of growth, and said that its losses were due primarily to operating and administrative expenses. It posted net losses of S$1.2 million and S$1.1 million for FY2023 and FY2022, respectively. That figure stood at S$706,391 for the first quarter of 2025. MetaOptics acknowledged that it might continue to operate at a loss, which could materially affect its working capital and cash reserves. It also said that, as an early-stage high-technology firm, it was unable to pay dividends and would only do so once the board deemed it financially viable.
CNA
an hour ago
- CNA
CNA Correspondent - Global Trade : On The Brink
Trade tensions between the US and several countries rise as new tariffs loom. Some trade talks face hurdles due to domestic concerns, even as other economies pivot to new markets to offset tariffs.
