Singaporean investment company Temasek has significantly increased its stake in the renowned Italian luxury Group, Ermenegildo Zegna. This strategic move underscores Temasek's confidence in the Italian luxury sector's global significance and Zegna's long-term growth potential.

Temasek has agreed to purchase 14,121,062 of Zegna's treasury shares at a price of $8.95 per share. This latest acquisition builds upon Temasek's previous market purchases of 12,699,981 ordinary shares. Upon completion of this transaction, Temasek's total holding will represent a 10 per cent stake in Ermenegildo Zegna Group's ordinary share capital.

Ermenegildo ‘Gildo’ Zegna, Chairman and CEO, Ermenegildo Zegna Group, emphasizes, the investment is a strong endorsement of their vision and reinforces their unique role as a custodian of authentic luxury brands. This partnership will further strengthen their global organic expansion, he opines.

Nagi Hamiyeh, Head- EMEA, Temasek, states, this investment reflects Temasek's ongoing commitment to supporting leading European businesses with strong track records and global potential. Temasek aims to be a thoughtful, long-term partner, empowering the Zegna family and management to execute their growth strategy and elevate their iconic brands and global footprint.

The transaction will provide Ermenegildo Zegna Group with a total cash consideration of $126.4 million, bolstering the Group's balance sheet. This enhanced financial flexibility will enable Zegna to capitalize on its brands' strong momentum and selectively pursue opportunities to accelerate organic growth. Temasek's extensive experience in the luxury sector and deep knowledge of the Asian market are expected to significantly contribute to Zegna's growth prospects, particularly in underdeveloped key geographies. Nagi Hamiyeh is also slated to join the Group’s Board of Directors in June 2026.