Qatar Fund About to buy 30% of Prada

[BerlinRocks]

http://www.challenges.fr/actualites...028/prada__le_qatar_lorgne_30_du_capital.html

Prada : le Qatar lorgne 30%
du capital

Le fonds souverain de l'émirat serait prêt à acquérir une participation minoritaire dans le groupe de luxe, que la famille Prada a renoncé à mettre en Bourse.




Le fonds souverain de l'émirat du Qatar serait intéressé par une prise de participation minoritaire d'environ 30% au sein du capital du groupe de luxe italien Prada, selon l'édition du mardi 4 août du quotidien italien Il Sole 24 Ore.
Le journal précise cependant que "pour le moment, il n'y aurait pas de négociations concrètes" et que Prada n'a pas confirmé ces informations.
Selon Il Sole, la famille Prada et le directeur général du groupe Patrizio Bertelli qui détiennent la société demanderont un prix élevé pour céder une part minoritaire. Alors qu'ils envisageaient initialement d'introduire le groupe en Bourse, ils ont fait machine arrière en raison de la chute des marchés financiers.
En 2008, le bénéfice net du groupe, qui détient les griffes Prada, Miu Miu et Church's, s'est élevé à 98,8 millions d'euros, soit en baisse de 22% par rapport aux 127 millions dégagés en 2007. Ses ventes avaient reculé de 0,7% à 1,648 milliard d'euros.
Le fonds souverain du Qatar gère des avoirs qui, en l'absence de tout chiffre officiel, sont estimés à quelque 50 milliards de dollars.
Le riche émirat gazier multiplie les investissements à l'étranger. Il devrait prendre environ 17% du capital du groupe automobile allemand Volkswagen ainsi qu'une participation dans Porsche. Il est par ailleurs actionnaire de la banque britannique Barclays.

challenges.fr

yahoo babelfish translation :

The funds sovereign of l' emirate would be ready to acquire a minority interest in the group of luxury, that the Prada family gave up putting out of Stock Exchange. The funds sovereign of l' emirate of Qatar would be interested by a minority acquisition of a holding d' approximately 30% within the capital of the group of Italian luxury Prada, according to l' edition of Tuesday August 4 of the Italian daily newspaper It Plate 24 Ore. The newspaper specifies however that " for the moment, it n' there would not have negotiations concrètes" and that Prada n' did not confirm this information. According to He Plate, the Prada family and the managing director of the group Patrizio Bertelli which hold the company will ask an high price to yield a minority share. Then qu' they considered d' initially; to introduce the group out of Stock Exchange, they made back machine because of the fall of the financial markets. In 2008, the clear benefit of the group, which holds the claws Prada, Miu Miu and Church' S, s' is high to 98,8 d' million; euros, is in fall of 22% compared to the 127 million released in 2007. Its sales had moved back from 0,7% to 1,648 billion d' euros. The funds sovereign of Qatar manages assets which, in l' absence of any official figure, are estimated at some 50 billion dollars. The rich person gas emirate multiplies the investments with l' foreigner. He should thus take approximately 17% of the capital of the German automobile group Volkswagen qu' a participation in Porsche. He is in addition shareholder of the British bank Barclays.

 

[BerlinRocks]

'real' english paper ...

Prada: Qatar interested in a 30% stake
MILAN, 4 August 2009 (AFP) – The sovereign wealth funds of the emirate of Qatar are interested in taking a stake of around 30% in Italian luxury group Prada which has abandoned its planned offering on the stock market, stated Italian daily newspaper Il Sole 24 Ore on Tuesday 4 August.

“The sovereign wealth fund of Qatar (Qatar Investment Authority) is knocking on Prada’s door. The objective: to take a minority stake-holding of around 30% in the label’s capital,” said, citing banking sources.

However, “for the moment, there have not been formal negotiations”, added the newspaper.

Questioned by the daily paper, Prada did not confirm the story.

According to Il Sole, the Prada family and CEO of the group Patrizio Bertelli, which currently own the business, will demand a large amount to part with a minority stake.

Whereas the original plan was to float the group on the stock market, the company has recently back-peddled as a result of unstable financial markets.

In 2008, the net profit of the group, which owns the labels Prada, Miu Miu and Church’s, was €98.8 million, a decrease of some 22% on the €127 million seen in 2007. Its sales also dropped by 0.7% to €1,648 billion.

The sovereign wealth funds of Qatar manage resources which, in the absence of any official figure, are estimated to be worth around $50 billion.

The oil rich emirate is increasing its overseas investment. It should take around 17% of the capital of German automobile group Volkswagen as well as an involvement with Porsche. Furthermore, the fund is already a shareholder of British bank Barclay’s.

By Jonathan Fulwell (Source: AFP)

fashionmag.com

 

[Street_a_Licious]

lol

how could Miuccia refuse. Prada's low in funds now anyways.

 

[Squizree]

30% of Prada....that's quite a bit. Prada hasn't been doing too well recently from what I remember. Pray they fire Miuccia and get someone new.

 

[dee-ha]

30% of Prada....that's quite a bit. Prada hasn't been doing too well recently from what I remember. Pray they fire Miuccia and get someone new.

lol, how can they fire Prada? she's like the owner of the company

 

[Squizree]

lol I know it was a joke. Maybe she would realise how lame she is and fire herself.

 

[Street_a_Licious]

pft. with her crappy previous collections? didn't she say she wanted to go as ugly as her customers would go with her? my eyes are still bleeding from that wool experiment.

 

[BerlinRocks]

Anyway ...

What would it change if QIA takes 30% of Prada ?
I'm not sure it would change something seriously ...

Could someone explain what would it change ?

apart a MiuMiu shop on The Pearl ... I cannot see ...

It's some investement ...
nothing more, right ?

i'm soo dumb when it comes to finances and business ...

 

[venjeans]

i think buying 30% of company's stock will give buyer a power to control the company, not total control yet within negotiations.

 

[mikeijames]

how much is the deal worth? i wonder if it will satisfy their $500M+ debt....

 

[fashion tyger]

lol I know it was a joke. Maybe she would realise how lame she is and fire herself.

 

[Street_a_Licious]

as said in the article, 30% is a minority stake. Miuccia will always have the majority, so all final decisions are made by her, but i'd believe they could veto things. but i don't think it gives them a seat at the board, does it?

 

[Squizree]

I dunno Im kinda interested to see what this is gonna do. Qatar Fund is obviously gonna have a say in everything. Maybe a small say but none the less something.

 

[eternitygoddess]

Qatar should ditch Prada and invest in Lacroix.

 

[cesarcmma]

Posted by Pasha in the bussines news small thread

Prada asks banks to ease terms on debt

By Vincent Boland in Milan

Published: June 15 2009 03:00 | Last updated: June 15 2009 03:00

Prada, the Italian fashion group, is in talks with its banks about renegotiating a slice of its debt as it seeks to free up cash for its aggressive store expansion.The fashion house, which owns the Prada, Miu Miu and Church's brands, had net debt of about €1.1bn ($1.5bn) at the end of 2008.

People familiar with the group said talks were under way between the company and its creditors, led by UniCredit and Intesa Sanpaolo, the Italian banks, to reschedule the repayment of €350m that matures in the summer of 2010. Prada's total debt is divided between that owed by its industrial operations, amounting to €537m, and that owed by the holding company, which is 95 per cent-owned by Miuccia Prada, the label's designer, and Patrizio Bertelli, her husband, who is the group's chief executive. The €350m of debt under discussion is owed by the holding company.

Much of the group debt was built up in the late 1990s when Prada acquired the Jil Sander and Helmut Lang labels and began to expand into new markets. The banks are understood to be willing to consider rescheduling repayment to 2011 or 2012. This would give Prada the space to ride out the global recession and use its cash to continue its store expansion programme. Prada spent €160m on 34 new stores and other corporate infrastructure in 2008. Mr Bertelli said earlier this year that he would seek to position the group to emerge as a winner from the recession through continued expansion. Prada made net profits of €99m last year, down 22 per cent on 2007.

Bankers in Milan said Ms Prada and Mr Bertelli appeared determined to retain their ownership and control of the group during the global economic crisis, which is taking a toll on some of the world's most famous fashion houses. A boardroom rift at Versace led to the appointment last week of a new chief executive, while Christian Lacroix, the French house, has sought bankruptcy protection. The bankers said that in order to maintain their hold on the company, the couple would need to renegotiate the debt. The couple have received a handful of tentative approaches from private equity firms in recent weeks but it is understood that none of these went beyond the earliest, most preliminary stage.

Ms Prada and Mr Bertelli are thought to be unwilling to talk to outside investors both because they feel they do not need cash so urgently and because they are unwilling to put a value on the group in a recession, as this might have a negative effect on any future initial public offering. Prada has had to cancel IPO plans several times in recent years because they coincided with market downturns.

ft.com

 

[ParadEyes]

Qatar should ditch Prada and invest in Lacroix.

I'm with you on this.

 

[Squizree]

Prada, Richemont Rumors Persisting
Wed, 01/20/10 -

Two weeks ago, a report that luxury conglomerate Richemont (whose properties include Cartier, Van Cleef & Arpels, and Chloe) was taking a stake in Prada; Prada emphatically denied the notion. But Business of Fashion's Imran Amed reports today from Berlin Fashion Week: "Sources here in Berlin say the Prada and Richemont rumours are true, despite firm denials from Prada." If that's the case, a Prada-Richemont marriage could create quite the competitor for Richemont rival LVMH.

Rumors of Prada and Richemont Joining Forces Bubble Up Again
Tue, 01/05/10 —

For the second time in six months, reports of luxury conglomerate Richemont (think Cartier, Van Cleef & Arpels, Chloe) taking a stake in Prada have surfaced. Both times, Prada has vehemently denied the possibility — first in August and again today — but if the union were to take place, as the New York Post suggested, it could create quite the competitor for Richemont rival LVMH.

Prada has long expressed interest in going public and rejected past private equity offers, but its current debt — $1.7 billion worth — has prevented company expansion. If Richemont acquired one-third of the company as reports imply, with the possibility of an eventual majority investment, Prada would be much better equipped to take on emerging markets. But again, Prada "categorically denies any negotiation whatsoever to sell any share to Richemont." And although a Richemont spokesman says the company doesn't comment on rumors, a source close to the company told WWD of the story: "just silly. I don't know where they got it, and clearly it's a quiet time for news."

fashionologie

 

[mikeijames]

^what an interesting world we'd live in if prada and chloe sat under the same corporate umberella.

 

[Squizree]

As much as I dislike Prada and Miuccia's fashion vision, I don't want to see the house owned by another giant label-sucking company.