Prada Board Mulling €40 Million Return To America's Cup Sailing
In a notice filed on the Hong Kong Stock Exchange, Prada says the Italian fashion house is considering a 40 million euro sponsorship offer to join the Luna Rossa team for the 2013 America's Cup. If approved by the board, the sponsorship will be paid in installments over a 21 month period.
After After ten years and three campaigns, Prada opted out of the 2010 America's Cup, but based on this announcement seems poised to re-enter the competition with a massive new sailing sponsorship.
The full notice of the sponsorship "invitation" is posted below and can also be found here.
The Board of Directors of PRADA S.p.A. (the “Company”) is pleased to announce that its wholly-owned subsidiary, Prada S.A. (“Prada SA”) has been invited to sponsor the participation of Luna Rossa yacht in the XXXIII edition of the America’s Cup, which will be held in September 2013 in San Francisco, United States of America (the “Luna Rossa Sponsorship”).
Prada SA is currently negotiating the sponsorship agreement with Maestrale Holding S.r.l., a company that is indirectly controlled by the Company’s President, Ms. Miuccia Prada Bianchi, and the Company’s Chief Executive Officer, Mr. Patrizio Bertelli, in connection with the Luna Rossa Sponsorship (the “Sponsorship Agreement”). If the negotiations are successfully concluded, the Sponsorship Agreement will constitute a connected transaction for the Company under Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”).
The total amount of the sponsorship under the Sponsorship Agreement is expected to be approximately Euro 40 million and will be paid in installments over the period starting from December 2011 to September 2013. The Sponsorship Agreement would constitute a connected transaction exempted from the independent shareholders’ approval requirement under Rule 14A.32 of the Listing Rules but subject to the announcement and reporting obligations under Chapter 14A of the Listing Rules.
This announcement is made on a voluntary basis and the Company will make a further announcement in accordance with Chapter 14A of the Listing Rules when the negotiations in relation to the Luna Rossa Sponsorship have been concluded and the Sponsorship Agreement has been signed.
By Order of the Board
Mr. Carlo Mazzi
Hong Kong, 19 October 2011