Ermenegildo Zegna Group Inks Agreement to Sell Stake to Temasek
- Luisa Zargani
- Jul 30
- 4 min read
As of Wednesday, the Singapore-based investment company will hold 10 percent of the Italian group.
A preview of the Zegna Men's Spring 2026 collection. Giovanni Giannoni/WWD
MILAN — Capitalizing on the momentum of its brands, the Ermenegildo Zegna Group is welcoming a new partner.
Zegna has inked an agreement to sell 14.1 million shares to Venezio Investments Pte. Ltd., an indirect wholly-owned subsidiary of Singapore-based investment company Temasek Holdings. This amounts to around 5 percent of the group.
The price was pegged at $8.95 a share, an average of Zegna share prices over the period from June 30 to July 25, so that upon the closing, expected on Wednesday, the Italian group will receive a total of $126.4 million.
Zegna is publicly listed on the New York Stock Exchange and Temasek previously acquired 12.7 million ordinary through market purchases, or a little less than 5 percent, in an undefined time frame. After the closing of the transaction, Temasek will own a total of 26.8 million shares, equivalent to 10 percent of Zegna.
“I am delighted to welcome Temasek as a strategic investor in our group’s shareholder base,” said Gildo Zegna, chairman and chief executive officer of the group. “Their investment is a strong endorsement of our vision and long-term growth potential, while firmly recognizing 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.”
Nagi Hamiyeh, head of EMEA of Temasek, stated that the Zegna Group “has successfully established itself in the high-end luxury segment and presents significant long-term value creation opportunities across each brand. Our investment in them underscores our ongoing commitment to support leading European businesses with strong track records and global potential.”
Hamiyeh concluded by saying that Temasek will be “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.”
In a statement, Zegna said “the enhanced financial flexibility will allow the group to carefully seize selected opportunities for accelerating the organic growth of the current brand portfolio.” It pointed to Temasek’s “wealth of experience in the luxury sector and deep knowledge of the Asian market” contributing to the Zegna group’s “growth prospects and support the expansion in key geographies” where it is still underdeveloped.
Hamiyeh is expected to join the Zegna Group’s board of directors in June 2026.
Temasek has a wide range of investments in different business, among which are Amazon, Visa Inc. and Singapore Airlines. It had previously invested in Stone Island and Li & Fung. Its net portfolio is valued at 299 billion euros. The group has 13 offices in nine countries around the world.
After the closing of the Temasek transaction, the Zegna family will have a 60.3 percent stake in the group, down from 63.4 percent. A source explained that the 5 percent stake acquired by Temasek from the group comprised treasury shares, set aside by the parent company for extraordinary operations upon the listing. “This transaction dilutes the capital.” To list in New York in Dec. 2021, Zegna entered into a business agreement with Investindustrial Acquisition Corp., a special purpose acquisition corporation, sponsored by investment subsidiaries of Investindustrial VII LP. Investindustrial will have an 11 percent stake in Zegna, down from 12 percent and 19 percent will be free-floating, down from 25 percent.
A market source said that “at this moment, having cash in the coffers is a very important asset. Zegna has no interest in delisting the company or in additional M&A, but with the new funds can invest in the organic growth of its brands.” As of Dec. 31, the group’s net financial position stood at a negative 94 million euros. Thanks to the transaction with Temasek, it will be cash positive for 14 million euros, converting $126.4 million into 108 million euros.
The Ermenegildo Zegna Group marks 115 years in business in 2025, and while it stays true to the values of its namesake founder and its heritage, the Italian company has morphed into a publicly traded luxury powerhouse reporting 2024 sales of 1.94 billion euros comprising the Thom Browne brand and Tom Ford Fashion in addition to its Zegna menswear fashion label.
Tom Ford Fall 2025 Ready-to-Wear Collection at Paris Fashion Week Courtesy of Tom Ford
The company was established in 1910 in Trivero, Piedmont as a producer of woolen fabric and textile mill and is now in its fourth generation of family ownership and operation.
Gildo Zegna over the years spearheaded the development of a strong textile supply chain, which includes the likes of Bonotto and Tessitura Ubertino, among others. In addition to its own Lanificio Zegna, the group’s textile supply chain includes Tessitura di Novara, Bonotto and Dondi, all acquired over the years, helping to raise its position in the country in terms of variety and size. In 2018, the family-owned group also finalized the acquisition of a controlling stake in Pelle Tessuta, which specializes in the weaving of leather, and bought a majority stake in Cappellificio Cervo, a historic men’s hat brand based in Biella.
In June 2021, in a sign of an increased effort to protect Italy’s unique supply chain, Zegna and Prada joined forces to acquire a majority stake Filati Biagioli Modesto SpA, each with a 40 percent stake in the cashmere firm.
As part of its strategy to rely on its own manufacturing capabilities and supply chain, the group plans to build a new luxury footwear and leather goods production facility in Sala Baganza, near Parma. The plant is scheduled to be completed by December 2026 and is expected to employ more than 300 people at full capacity in 2027.
Thom Browne Resort 2026 Collection Courtesy of Thom Browne
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