French luxury group Kering and Qatar’s Mayhoola have agreed to make an injection of €100 million in the capital of Maison Valentino to strengthen the financial structure of the group. The operation comes after Valentino defaulted earlier this year on the terms of a loan, according to Reuters.
MFI Luxury, the company through which Kering and Mayhoola control Valentino, will receive the capital injection in two tranches and the operation will be completed before December 16th. The entry of new funds responds to the demand of the banking pool that in 2024 granted a loan of €530 million, after Valentino failed to comply with the conditions (covenants in financial terminology) of this financing.
The banking pool consists of Intesa Sanpaolo, Banca Nazionale del Lavoro-BNP, Monte dei Paschi di Siena, Banco BPM and the Italian state investment fund Cassa Depositi e Prestiti (CDP). The financing matures in July 2029. In September, after Luca de Meo took the helm of Kering, the French luxury giant announced its intention to delay the full acquisition of Valentino until at least 2028. Currently, the MFI Luxury hólding is 70% controlled by the Qatar-backed Mayhoola phono, while Kering owns the remaining 30%.
The injection comes after Valentino defaulted on the covenants of a €530 million loan with a pool of several banks, signed in 2024. Kering acquired its 30% stake in Valentino in 2023 for €1.7 billion, with a call option to reach 100% of the firm in either 2026 or 2027. In September, Kering and Mayhoola amended their shareholder agreement, agreeing that “Valentino’s current ownership structure will not change before 2028 at the earliest.“ Mayhoola’s put options on Kering are now exercisable in 2028 and 2029, respectively.
“Following the start of a new phase at Valentino with the appointment of Riccardo Bellini as CEO, Kering and Mayhoola confirm their strategic alliance to support the development of the iconic Italian luxury house and remain fully committed to its long-term success,“ the two companies said in September. Kering closed 2024 by halving its net profit to €1.133 billion. The Pinault family’s luxury conglomerate ended the year with a turnover of €17.194 billion, down 12% from €19.566 billion the previous year.
For its part, Valentino released its 2024 results in April , which showed a downward performance, with a 22% drop in gross operating profit (ebitda) and a 3% decline in sales. Shortly thereafter, at the end of August, the Italian company changed captain after five years under the leadership of Jacopo Venturini, who has been replaced as CEO by Riccardo Bellini, former CEO of Mayhoola.
Valentino Milan
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