Shares in Moncler were indicated to open sharply higher on Friday after LVMH invested in the Italian outerwear specialist, getting one seat on its board.

LVMH has acquired a 10% stake in Moncler CEO Remo Ruffini’s investment company that is the Italian luxury label's biggest shareholder.

Moncler's Chairman and CEO Remo Ruffini is tightening his control of the outerwear specialist after striking a deal with LVMH, which will partner with Ruffini to fund an expanded investment in the Italian company.

LVMH has purchased a 10 percent stake in Double R, the investment vehicle controlled by Ruffini Partecipazioni Holding that owns a direct stake in Moncler.

The French luxury conglomerate has acquired a 10 per cent stake in Ruffini’s investment vehicle, Double R, which owns a direct stake in the luxury outerwear brand.