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Italy's Ferragamo sells stake to HK partner

Published 03/01/2011, 01:30 PM
Updated 03/01/2011, 01:32 PM

* Ferragamo holding sells 8 percent of capital to HK's Woo

* Raises stake in China distribution firms to 75 percent

* Ferragamo says not considering Hong Kong IPO

MILAN, March 1 (Reuters) - Italy's Ferragamo, whose shoes have been worn by film stars Marilyn Monroe and Al Pacino, has sold 8 percent of its capital to a Hong Kong partner, boosting its presence in China's booming luxury goods market.

The Florence-based company, which is mulling an initial public offering (IPO) , said on Tuesday its family holding Ferragamo Finanziaria SpA had sold the stake to long-time Hong Kong partner Peter Woo and his family.

The maker of fine leather bags and shoes said it was also raising its holdings in Chinese distribution firms to 75 percent from 50 percent.

"The agreements entered into today are aimed at strengthening the Ferragamo group's presence in a key area of the luxury business for the third millennium," Ferruccio Ferragamo, chairman of the 50-year-old group, said in a statement.

Ferragamo did not disclose financial details.

The fashion house, which opened its first store in Asia more than 20 years ago, has denied a media report about a possible plan to float in Hong Kong.

Revenue grew 26 percent to 782 million euros in 2010, helped by strong demand in emerging markets.

Italy's Caretti & Associati and Portale Visconti law firm were advisors for Ferragamo, while law firm Chiomenti advised the Woo's family.

(Reporting by Antonella Ciancio; Editing by Erica Billingham)

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