Temasek to acquire 10% stake in Ermenegildo Zegna for $126.4m

MILAN - Ermenegildo Zegna Group (NYSE:ZGN), a luxury fashion house with a market capitalization of $2.29 billion and strong financial health according to InvestingPro, announced Tuesday it has reached an agreement to sell 14.1 million treasury shares to Singapore-based investment company Temasek at $8.95 per share, generating proceeds of $126.4 million.

The transaction will give Temasek a 10% stake in the Italian luxury group, as the investment firm had previously acquired 12.7 million shares through market purchases. The purchase price represents the volume-weighted average of ZGN shares from June 30 to July 25, 2025. The stock, which has delivered an 11.28% return year-to-date, currently trades below its Fair Value according to InvestingPro’s analysis.

Nagi Hamiyeh, Head of EMEA at Temasek, is expected to join Zegna’s Board of Directors at the company’s next annual general meeting in June 2026.

"Their investment is a strong endorsement of our vision and long-term growth potential, while firmly recognizing the global significance of the Italian luxury sector," said Ermenegildo "Gildo" Zegna, Chairman and CEO of the group, in the press release statement.

The transaction, expected to close by July 30, will strengthen Zegna’s balance sheet and provide additional financial flexibility to support organic growth across its brand portfolio, which includes ZEGNA, Thom Browne, and TOM FORD FASHION.

Temasek, which manages a portfolio valued at S$434 billion (€299 billion) as of March 31, 2025, brings experience in the luxury sector and knowledge of Asian markets where Zegna sees growth opportunities.

The Ermenegildo Zegna Group reported revenues of €1.95 billion in 2024 and employs more than 7,100 people globally. The company maintains impressive gross profit margins of 66.6% and trades at a P/E ratio of 24.32. InvestingPro subscribers can access detailed financial health metrics and additional insights through comprehensive Pro Research Reports, available for over 1,400 US-listed companies.

UBS AG served as financial advisor to Zegna for the transaction, with Sullivan & Cromwell LLP providing legal counsel.

In other recent news, Ermenegildo Zegna NV has attracted attention following reports that Singapore’s state investment firm, Temasek, has acquired a 10% stake in the company. This development is notable as it signifies a significant level of confidence in Zegna, a luxury fashion house known for its high-end menswear and textiles. The investment comes as Zegna continues its efforts to broaden its global reach after going public in December 2021 through a SPAC merger. This move by Temasek could potentially influence investor perception and interest in the brand. The acquisition highlights the ongoing interest in the luxury sector and Zegna’s strategic position within it. While the financial terms of the stake acquisition were not disclosed, the involvement of a major investment firm like Temasek underscores the potential growth prospects seen in Zegna. Investors will likely keep a close watch on how this investment impacts Zegna’s future endeavors and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.