Armani's will: towards a stock market listing or sale within three years

The passing of Giorgio Armani officially ushers in a new era for the fashion house that bears his name. It is a future the designer had envisioned and planned in detail, entrusting it to his will. The first step, set out in writing, involves the sale of 15% of the share capital within 18 months of the opening of the succession. The sale must be made primarily to one of the major global luxury groups with which Armani already maintains partnerships— LVMH, EssilorLuxottica, L'Oréal —or to another operator of equal standing, chosen by the Foundation with the approval of Leo Dell'Orco, the designer's longtime right-hand man, or, in his absence, his grandchildren Andrea and Silvana.

This will be only the "first tranche." The will, in fact, provides for a second crucial step: between the third and fifth years, the transfer to the same buyer of an additional stake of between 30 and 54.9% of the capital, which would give the new shareholder an absolute majority of the fashion house. If this path does not materialize, Armani has envisioned an alternative plan: a stock market listing, which could take place on an Italian regulated market or one of equivalent standing, within a maximum of eight years of the opening of the succession.

In this scenario, the Foundation will still maintain a central role: it will not be able to drop below the 30.1% threshold and will be required to manage "an orderly valorization plan" for its stake. In any case, Giorgio Armani wanted the brand to remain independent from investment funds.