MILAN (Reuters) - Late designer Giorgio Armani has instructed heirs to gradually sell the fashion brand he created 50 years ago or seek a stock market listing, his will said, marking a surprising turn for a company highly protective of its independence and Italian roots.

The will, reviewed by Reuters, states heirs should sell an initial 15% stake in the Italian fashion house within 18 months and later transfer an additional 30% to 54.9% stake to the same buyer between three and five years after Armani's death. The designer, known in the industry as 'King Giorgio' died on September 4, at 91 and with no children.

The will also says that priority should be given to luxury giant LVMH, beauty heavyweight L'Oreal, eyewear leader EssilorLuxottica or another group of "equal standing" identified by a foundation the designer set up to preserve his legacy with the agreement of Armani's business and life partner Pantaleo Dell'Orco.

Alternatively, an initial public offering should be pursued, in Italy or in a market of equal standing, it said.

The explicit mention of stake sales and of France-listed players as potential buyers is in stark contrast with Giorgio Armani's persistent refusal to dilute his control or list his fashion group on the stock market.

Over the years, the maker of popular unstructured suits that gained him international fame received several approaches, including one in 2021 from John Elkann, scion of Italy's Agnelli family, and another from luxury brand Gucci, when Maurizio Gucci was still at the helm.

Armani was the sole major shareholder of the company he set up with his late partner Sergio Galeotti in the 1970s and over which he maintained a tight rein - both creative and managerial - until the very end.

He has left behind no children to inherit the business, which generated relatively stable revenue - 2.3 billion euros ($2.7 billion) in 2024 - but whose profits have shrunk amid a broad luxury industry recession.

The will gives the Fondazione Giorgio Armani and life partner and right-hand man Pantaleo Dell'Orco 70% of voting rights in the Armani group combined.

The foundation will retain a 30.1% stake in the event of a listing, according to the will.

Heirs should consider other fashion and luxury companies with which Armani's company has commercial ties for a future sale, the will also said.

(Writing by Lisa Jucca, editing by Giulia Segreti and Tomasz Janowski)