Giorgio Armani's Will Outlines Gradual Sale or IPO for Fashion Empire

Following the death of designer Giorgio Armani, his will has unveiled a comprehensive succession plan for his fashion empire, which allows for either a gradual sale or a potential Initial Public Offering (IPO). This represents a notable change for the brand, as Armani diligently safeguarded its independence throughout his lifetime to preserve his artistic vision. The will details a multi-stage process for a potential sale. It permits heirs to divest up to 15% of the company within one to 18 months following his passing. A subsequent sale, comprising 30% to 54.9% of shares, can then be offered to the same buyer three to five years later. Alternatively, if a suitable buyer is not identified, the will directs heirs to pursue an IPO. In the event of a public listing, a foundation established by the designer is mandated to retain a minimum of 30.1% of the shares. Industry analysts estimate the company's valuation to be between 5 and 12 billion euros. The will designates LVMH, L'Oréal, and EssilorLuxottica as preferred potential acquirers, and Reuters has reported that all three have indicated their willingness to explore a potential transaction. Control of the business is primarily distributed to longtime collaborator Pantaleo Dell’Orco (40%) and the Giorgio Armani Foundation (30%). The Foundation’s shareholding is required to remain at or above this 30% threshold, and it is responsible for appointing a new CEO. Niece Silvana Armani and nephew Andrea Cameana each receive 15%, while his sister and another niece are granted non-voting shares.