PARIS (Reuters) -The head of Qatar-backed investment fund Mayhoola on Friday denied an Italian newspaper report that suggested the fund and Gucci-owner Kering were considering selling their jointly owned fashion house Valentino.
“This news is untrue,” Mayhoola chief executive Rachid Mohamed Rachid told Reuters.
Kering shares, which have lost more than 60% of their value over the last two years, initially rose by around 2.5% in early Paris trade after the Corriere della Sera report, before paring some gains after Mayhoola’s denial.
A Kering spokesperson declined to comment.
Kering bought a 30% stake in Valentino in 2023 for $1.7 billion with a commitment to buy the remaining 70% by 2028.
The deal, struck at a top valuation just before the luxury sector entered a prolonged slowdown, has become a liability for heavily indebted Kering, which has come under pressure from investors and is trying to free up cash through divestments.
Kering estimated in its last annual report that fully executing the Valentino transaction, which could come as early as 2026 if Mayhoola exercises put options, would cost it four billion euros.
The future of Valentino, whose handbag unit Valentino Bags Lab Srl was recently placed under court administration due to labour conditions in its supply chain, has become the subject of increased speculation since the firm said last month its CEO Jacopo Venturini was on sick leave.
The Rome-based fashion house, which last year named star designer Alessandro Michele as creative director to replace long-serving Pierpaolo Piccioli, reported a 2% drop at constant exchange rates in revenues last year, to 1.31 billion euros ($1.52 billion).
($1 = 0.8607 euros)
(Reporting by Claudia Cristoferi, Andrew Mills and Tassilo Hummel, editing by Giulia Segreti and Elaine Hardcastle)
