MILAN — Sources said on Friday the judge expected to rule on the Roberto Cavalli sale has allegedly approved the offer made by Damac. The next step is the signing of the share purchase agreement. An announcement is expected early this week.
Damac, a property developer, is based in Dubai and Friday is the weekly day off. Given the relationship between Damac and chief executive officer Gian Giacomo Ferraris, sources believe Ferraris is expected to stay on after the deal has been signed.
As reported, sources believed Damac was the investor most likely to buy the Roberto Cavalli brand.
OTB and Bluestar Alliance were also said to have submitted an offer.
Damac 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. 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.
As reported, Cavalli received a total of five offers. Three offers were binding for 100 percent of the company. Another binding offer was made to purchase unspecified company assets, while a fifth party submitted a nonbinding expression of interest.
At the end of March, the Roberto Cavalli SpA board revealed that it had decided to file a restructuring plan with the Court of Milan, which would allow it to continue to operate while holding discussions with creditors under the so-called process of “composition with creditors.” In the filing, Roberto Cavalli SpA requested 120 days to prepare the restructuring plan and to allow the company to continue to evaluate potential new expressions of interest to buy the brand. That was followed by Cavalli’s American subsidiary Art Fashion Corp. filing for Chapter 7, ceasing all operations. Creative director Paul Surridge exited the fashion house in March.
The investment would also have made sense for OTB, as the group’s manufacturing arm Staff International is Just Cavalli’s licensee. Renzo Rosso’s OTB is the parent of brands such as Diesel, Marni and Maison Margiela.
According to market sources, Bluestar Alliance, which has investments in Tahari, Bebe and Catherine Malandrino, continued to look at Cavalli and presented an offer.