The rumors of the sale of Ferragamo are back: the family would be ready to leave and the stock soars on the stock market.
Despite the denial about the existence of ongoing negotiations, duly arrived by the spokesman of the historic made in Italy luxury company, the stock opened up by more than 5% and rose by 11% at 4,86 to 21,14 euros in a very restless but currently essentially flat market.
According to the rumors circulated, Ferragamo is allegedly in talks with an important private equity fund for a possible sale, and is also considering the sale of some real estate assets. A spokesman for the company specified that "the Ferragamo family is not interested in selling and there are no negotiations on the table". Equita's analysts underline that “due to the fragmentation of the family at the head of the controlling holding (which holds 54% of the capital), Ferragamo is always one of the main candidates as a possible target for M&A in the sector and similar rumors are recurring. However, several times in recent months the president Ferruccio Ferragamo has confirmed the family's commitment and ruled out any sale hypothesis, as in this case".
The stock, writes Equita, trades at 28 times the 2019 price/earnings ratio, at a premium of around 20% compared to sector valuations, already partly incorporating a speculative premium. %-20% on the basis of past deals in the sector but also taking into account the current fears of a slowdown in Chinese luxury consumption".
With regard to possible property sales, the properties recognized in the balance sheet are the industrial and logistics site near Florence and the two flagships in NY and Seoul, as well as US properties offering income (active leases for 12,6 million in 2017).
