Temasek Boosts Stake in Luxury Giant Ermenegildo Zegna to 10%
Singapore’s state investment firm, Temasek, has significantly increased its holding in the renowned Italian fashion house, Ermenegildo Zegna Group, reaching a 10% ownership stake. This strategic move signals Temasek’s commitment to bolstering European family-owned businesses with global aspirations.
Strategic Investment in Luxury Sector
Temasek views Zegna as a prime example of success in the high-end luxury market, recognizing substantial long-term value creation potential across its brands. The firm emphasized its intention to leverage its expertise in the luxury industry and deep understanding of Asian markets to support Zegna’s ongoing expansion.
โLeveraging our experience in the luxury sector and deep knowledge of the Asian market, weโre looking forward to partnering the group on its growth journey and global expansion.โ
โTemasek
The transaction involved Temasek acquiring 14.1 million Zegna treasury shares at $8.95 per share, totaling $126.4 million. Combined with prior open market purchases of 12.7 million shares, this brings Temasek’s total interest to 10% of the Italian fashion house.
Nagi Hamiyeh, Temasek’s Head of Europe, the Middle East, and Africa, expressed enthusiasm for the partnership. He stated, โWe look forward to being a thoughtful, long-term partner to the Zegna family and management team, empowering them to execute on their growth strategy and supporting their vision to elevate their iconic brands and global footprint.โ Mr. Hamiyeh is slated to join Zegna’s board as a non-executive director at the company’s next annual general meeting in June 2026.
Seeking Value in European Market Volatility
Temasek is actively exploring investment opportunities in Europe, a region where global trade uncertainties have created attractive valuations for certain companies. One source close to the deal indicated that Temasek perceives “fertile ground” in Zegna, which is becoming more receptive to international investors.
Despite broader economic uncertainties, high-net-worth individualsโthose spending over โฌ50,000 (approximately $57,660) annually on luxury goodsโcontinue their spending habits. While representing less than 1% of the market, this segment drives 23% of the industry’s total value, demonstrating remarkable resilience even as aspirational consumers scale back their purchases, according to a report by the Boston Consulting Group.
The capital infusion from this transaction will be used to strengthen Zegna’s financial foundation and fuel its expansion into new territories, particularly in Asia. Temasek’s regional insights are expected to be instrumental in this growth phase.
โWith Temasek’s partnership, we are even better positioned to help strengthen our organic expansion globally.โ
โErmenegildo “Gildo” Zegna, Chairman and CEO of Zegna