French luxury group Kering and Qatari investment company Mayhoola have amended their shareholders’ agreement related to Kering’s 30% stake in Valentino. The ownership structure remains unchanged until 2028, with options for Mayhoola’s remaining stake acquisition and Kering’s call option deferred to 2029. Kering reported €17.2bn revenue and 47,000 employees in 2024.

Mayhoola, an investment company under Qatari Mayhoola for investments, focuses on luxury sector investments. It owns Valentino, Balmain, Pal Zileri, and Beymen. The agreement to delay full Valentino acquisition by Kering aims to alleviate the group’s €9.5bn debt under new CEO Luca de Meo. Valentino’s revenue fell to €1.3bn in 2024 under CEO Riccardo Bellini.

The updated agreement between Kering and Mayhoola marks a strategic move to address debt concerns and financial strain on Kering. With Kering’s commitment to acquire Valentino, the agreement defers key acquisition options to 2028-2029. The luxury group’s CEO Luca de Meo prioritizes debt reduction amid financial challenges.

Read more at Yahoo Finance: Kering delays full acquisition of Italian fashion brand Valentino