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Prada invests in Italian tannery, undecided on dual listing

Published 09/15/2022, 03:16 AM
Updated 09/15/2022, 09:27 AM
© Reuters. Prada products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly
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MILAN (Reuters) - Hong Kong-listed Italian luxury group Prada (OTC:PRDSY) SpA said on Thursday it had bought a stake in the Tuscan tannery Superior SpA, tightening its grip on its supply chain, but noted it had not decided whether to list in Milan. A dual listing in Europe would help Prada widen its investor base, as some investment funds can only put money in European or U.S. stocks.

"No decision has been taken," on a secondary listing in Milan, Chief Executive Patrizio Bertelli said in an interview with Italian daily newspaper Il Corriere della Sera. In July, Prada's Chairman Paolo Zannoni said a secondary listing in Milan was a possibility but not a priority for Prada.

Last month Bloomberg News reported that Prada was considering seeking at least $1 billion from a secondary listing in Milan and was working with Goldman Sachs (NYSE:GS) on early preparations.

Italian daily newspaper Il Sole 24 Ore reported on Tuesday that Prada aimed to list in the Milan stock exchange next year.

Tuscany has been booming as high-end fashion houses scramble to meet a strong wave of global, post-pandemic demand for luxury accessories, expanding their factories and buying artisan workshops.

Based in Santa Croce sull'Arno, near Pisa, Superior is a leader in calfskin processing and has been active for more than 60 years in the Italian and international markets as a specialised tanner for the luxury sector, Prada said.

© Reuters. Prada products are seen at their store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly

Under the agreement, Prada bought a 43.65% stake in Superior, whose management responsibility will remain with the current CEO, Stefano Caponi.

"The acquisition of a shareholding in Superior represents another important step in the strategic direction towards vertical integration of the Prada Group's supply chain," Bertelli said.

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