MILAN — The sale of Roberto Cavalli SpA is almost complete.
The Florence-based firm said Tuesday the Court of Milan has approved its restructuring plan. The official green light will be given in 15 days, when the company shareholders will proceed with the sale of their shares to Vision Investment Co. LLC, the Dubai-based company controlled by the founder of Damac Properties Group.
As reported, the official closing of the Roberto Cavalli sale was expected by the end of October, according to sources.
This summer, Vision Investment Co. LLC, controlled by Hussain Sajwani, founder and chairman of the Damac Properties Group, signed a binding contract with the Florence-based fashion company and its shareholder Varenne 3 to acquire 100 percent of the firm. This confirmed a WWD report on June 28 that the judge expected to rule on the sale had approved the offer made by Damac. Sources contend chief executive officer Gian Giacomo Ferraris was instrumental in the deal with Sajwani and that he is expected to stay on in his role.
The binding agreement is in compliance with Cavalli’s “composition with creditors” with the Court of Milan and it allows the business to continue while it holds discussions with creditors and implements a debt restructuring plan. Financial details and the amount of the debt were not disclosed, although sources peg the transaction at around 160 million euros and believe the agreement includes a capital increase of around 65 million euros and the payment of all creditors.
The deadline for creditors to oppose the restructuring of Cavalli’s debt was Sept. 30 and nobody opposed it.
The buyer has presented an industrial plan, which was being evaluated by a judge of the Court of Milan who was expected to rule on Cavalli’s agreement with creditors that was submitted on Aug. 2, a source said. Only after the judge’s approval can the transfer of shares to the new owner be completed.
A property developer, Damac is based in Dubai and it was especially interested in Cavalli because its strategic investment arm Dico International is working on a five-star hotel tower in Dubai that is expected to comprise 220 rooms and to be completed in 2023. When the deal was revealed, Ferraris said this was the first of at least five hotels, called Aykon, to open in 10 years and to be decorated by Cavalli. Damac, which is one of the top 10 companies publicly listed on the Dubai Financial Market with a market capitalization of $4 billion, is funding the project with an investment of $500 million. Damac is also building Just Cavalli villas in Dubai.
Italian private equity fund Clessidra Sgr took control of Cavalli in 2015 through its Varenne vehicle, which at the time included L-GAM and Chow Tai Fook Enterprises Ltd.