Salvatore Ferragamo, the Italian luxury-goods firm, has announced its plan to acquire minority interests in three joint ventures operating in the Greater China area. The company will be investing a total of $42 million in this strategic move.
The purchase will be financed using available cash resources, with the transaction taking place simultaneously as the transfer of equity interests. Specifically, Salvatore Ferragamo and its subsidiary, Ferragamo Hong Kong, will acquire 25% of Ferragamo Moda (Shanghai) Co. Limited and Ferrimag Limited, as well as 24.8% of Ferragamo Retail Macau. This will result in the consolidation of ownership, making Salvatore Ferragamo the sole shareholder of all three joint ventures.
By making these acquisitions, Salvatore Ferragamo aims to strengthen and revitalize its presence in the Greater China area. This region is recognized as a significant market with immense growth potential for the company.
Currently, the minority interests in the joint ventures are held by Imaginex Holdings Limited and Imaginex Overseas Limited. It is worth noting that both companies have ties to Peter K. C. Woo, a board member and shareholder of Salvatore Ferragamo. However, Woo did not participate in the approval of this transaction.
In order to ensure transparency and fairness in the purchase process, an independent financial advisor was appointed by the committee responsible for transactions with related parties. This advisor has confirmed the fairness of the price from a financial standpoint.
The transfer of equity interests is expected to be finalized on November 9th of this year. Through this strategic acquisition, Salvatore Ferragamo is positioning itself to capitalize on the immense market potential in the Greater China region.
By Andrea Figueras