By  on May 16, 2007

MILAN — Private equity fund Permira has taken control of 29.6 percent of Valentino Fashion Group, inking a deal with the group’s majority shareholders, International Capital Growth S.a.r.l., for 782.6 million euros, or $1.06 billion at the current exchange rate.

Permira has set up a new company called Red & Black Lux S.a.r.l., entirely controlled by the fund, to buy 21,951,000 shares of VFG SpA at 35 euros per share, or $47.60, in addition to the dividends expected for 2006 equal to 65 cents, or $88 cents, per share.

Giulio Andena, chief executive officer of the Milan-based Permira Associati SpA, said in a statement that Permira, “is interested in increasing its shares, also through a tender offer, at a price not above that which was offered to ICG, or 35 euros [$47.6] per share ex dividend.”

Permira was supported in the deal by Italy’ s merchant bank Mediobanca, Unicredit and Citigroup.Permira won the battle for VFG over private equity fund Carlyle Group, which had no comment on Wednesday. WWD has learned, however, that negotiations with the group’s other shareholders are still going on, and that it’s not necessarily over yet.

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