Temasek Deepens Stake in Zegna Group Amid Shifting Luxury Investment Dynamics

Temasek Holdings has acquired a 10 percent minority stake in the Ermenegildo Zegna Group, the parent company of luxury menswear brand Zegna, Thom Browne and Tom Ford Fashion. The deal involves the purchase of 14.1 million shares at USD 8.95 per share, amounting to approximately USD 126.4 million (or SGD 162.9 million). This brings Temasek’s total holdings in the group to 26.8 million shares, following a previous acquisition of 12.7 million shares, now collectively representing 10 percent ownership.

The transaction is set to close by 30 July 2025. The partnership aims to accelerate Zegna Group’s global expansion and retail growth, with Temasek contributing its experience in luxury and knowledge of the Asian market.

One possible reason Temasek Holdings is exploring fashion investments in the region could be the valuation opportunities created by global market volatility — particularly after disruptions like US President Donald Trump’s trade war, which made several luxury and consumer-facing companies more attractive due to depressed stock prices.

Proceeds from the transaction will be used to strengthen Zegna’s balance sheet and support expansion into new markets — particularly in Asia — where Temasek’s regional expertise is expected to play an important role, the statement read.

Nagi Hamiyeh — head of Europe, Middle East and Africa — at Temasek will join Zegna Group’s board as a non-executive director. As of March 2025, Temasek’s portfolio is valued at SGD 434 billion. Temasek has a history of fashion investments — including Moncler in 2016, a stake in Farfetch in a USD 110 million around that same year and a 30 percent share in Stone Island in 2017 (later sold to Moncler in 2020).

Gildo Zegna — Chairman and CEO — characterised Temasek’s partnership as a strong vote of confidence in the company’s long-term vision and growth ambitions. He emphasised that the collaboration reinforces Zegna’s role as a guardian of genuine luxury heritage.

“With Temasek on board, we’re in a stronger position to accelerate our global expansion,” Zegna said, reaffirming that the company remains firmly under family leadership. “The business is not for sale, and that will not change,” he stated.

For more on the latest in global economic and business reads, click here.

The post Temasek Deepens Stake in Zegna Group Amid Shifting Luxury Investment Dynamics appeared first on LUXUO.