Singaporean investment firm Temasek is setting its sights on the luxury fashion market, building a ten-percent stake in Italian luxury group Ermenegildo Zegna. The state-owned investment group announced on July 29 that it has inked a deal with Zegna to purchase five-percent of its shares, adding to another five-percent stake it previously acquired in the open market.
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According to a press release from Zegna, the luxury group agreed to sell 14,121,062 treasury shares at a price of US$8.95 (S$11.52) per share to Temasek, putting the deal at a total of US$126.4 million (S$162.6 million). It is expected to close on July 30, and will bring Temasek’s total stake in the group to ten-percent, worth around US$220 million (S$282.9 million), at the time of publishing.
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“I am delighted to welcome Temasek as a strategic investor in our Group’s shareholder base. Their investment is a strong endorsement of our vision and long-term growth potential, while firmly recognising the global significance of the Italian luxury sector. With Temasek’s partnership, we are even better positioned to help strengthen our organic expansion globally and to reinforce our unique role as a custodian of truly authentic brands,” said Ermenegildo “Gildo” Zegna, Chairman and CEO of the Ermenegildo Zegna Group.
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Meanwhile, Nagi Hamiyeh, Head of Europe, the Middle East and Africa at Temasek, added that the group has “successfully established itself in the high-end luxury segment and presents significant long-term value creation opportunities.” He added: “Our investment in them underscores our ongoing commitment to support leading European businesses with strong track records and global potential.”
Hamiyeh is also expected to join the Zegna’s board of directors as a non-executive member at its next annual general meeting in June 2026.
Founded in 1910 in Trivero, Italy, the Ermenegildo Zegna Group houses several notable luxury fashion brands, including ZEGNA, Thom Browne and Tom Ford Fashion. Following this investment, the group says it plans to tap on Temasek’s expertise of the Asian market to support its expansion in key geographies where the its presence remains underdeveloped.