In surprise twist, Armani’s will sets path for sale of fashion empire

WILL INSTRUCTS HEIRS TO SELL 15% STAKE WITHIN 18 MONTHS, THEN UP TO 54.9% PRIORITY BUYERS INCLUDE LVMH, L'OREAL, ESSILORLUXOTTICA FOUNDATION AND PARTNER HOLD 70% VOTING RIGHTS HEIRS SHOULD CONSIDER IPO AS ALTERNATIVE TO SALE OF SECOND TRANCHE OF SHARES ESSILORLUXOTTICA SAYS WOULD ASSESS POSSIBLE ARMANI DEAL

- REUTERS

Late designer Giorgio Armani has instructed heirs to gradually sell the fashion brand he created 50 years ago or seek a stock market listing, his will said, marking a surprising turn for a company highly protective of its independence and Italian roots.

The will, reviewed by Reuters, states heirs should sell an initial 15% stake in the Italian fashion house within 18 months and later transfer an additional 30% to 54.9% stake to the same buyer between three and five years after Armani’s death.

The designer, known in the industry as "King Giorgio’, died on September 4, at 91 and with no children to inherit his fashion empire.

The will also says that priority should be given to luxury giant LVMH, beauty heavyweight L’Oreal, eyewear leader EssilorLuxottica or another group of “equal standing" identified by a foundation the designer set up to preserve his legacy with the agreement of Armani's business and life partner Pantaleo Dell'Orco.

As an alternative to the sale of the second tranche of shares, an initial public offering should be pursued, in Italy or in a market of equal standing, it said.