VTB interested in acquiring Roberto Cavalli fashion company

(Roberto Cavalli)

VTB Capital, the Investment Department at VTB group, is negotiating the acquaistion of the control package of shares at Italian Roberto Cavalli fashion company, Women's Wear Daily (WWD) reported, stating anonymous sources.

Russian Vjedomosti confirmed the information based on its own resources.

According to media, VTB Capital is planning to take over 60% of Roberto Cavalli’s company. Transaction amount could total more than USD 667 mil and the entire fashion company, based on the agreement, can be estimated at USD 1,1 billion.

So far, VTB Capital has not invested in fashion industry, Itar tas reports.

As WWD reports that Cavalli worries about who will manage his business after the control package sale. Specifically, designer is interested what his wife Eva who is now helping him with his creations will do.

In May this year, Financial Times (FT) wrote that a 73-year old designer was negotiating on sales of control in his company with the InvestCorp investment fund.

According to the information of the British newspaper, Cavalli was planning to sell package of shares for 450 million pounds (USD 755 mil) for the entire fashion company. It is 15 times more than EBITDA. Before that, Cavalli was negotiating with the Permir funda. As FT states, they negotiated sales of shares at 460 million pounds for the entire company, including debt.

The Italian designer has been trying to sell his fashion company for a few years. The information on the interest of the investment companies for his property have been present in media since 2008.

Cavalli has said for a few times in interviews that he was planning to ear one to three billion dollars from the sales of the control share. He was occasionally giving up from the intention to sell the share explaining that with the wish to keep control in his own company.