Prada Pays $72M To Family Heir To Take Control Of Milan Stores

Prada S.p.A. (HKG: 1913) has come to an agreement with its co-CEO Miuccia Prada to take over four of the company’s stores she controls, Bloomberg reported on Tuesday.

The Italian fashion trailblazer will pay $73 million as part of the bargain.

“The move will be an important step in further developing and extending the group’s brand identity,” Prada says.

The Italian fashion house went public in Hong Kong in 2011, raising $2.1 billion at the time, but the four Milan stores were kept out of the IPO since the Prada family regarded them as precious family heirlooms. These include Prada’s first-ever opened store in Galleria Vittorio Emanuele II, Italy’s oldest mall among the still active. The store was opened in 1913.

Miuccia took over the company founded by her grandfather Mario Prada in 1978. She runs the company alongside her husband and co-CEO Patrizio Bertelli.

Price Action

Prada shares were trading at up to 1% in early trade on Wednesday.