Kering is selling about 8.8 million shares that it owns in Puma, representing 5.9 percent of the share capital of Puma, through a placement to qualified investors.
“The proceeds of this transaction will be used for the general corporate purposes of Kering and will further strengthen its financial structure,” the French luxury group said in a statement.
Since 2018, Kering has gradually reduced its stake in Puma after spinning off 70 percent of the company to its shareholders as part of a plan to refocus on its luxury division. That move left the Pinault family’s private investment arm Artémis with a 29 percent stake and Kering with around 16 percent.
Kering’s share price has recovered to its levels at the start of 2020, after plummeting by as much as 39 percent in March as the coronavirus pandemic shut stores and brought factories to a halt.
Following the Placement, Kering is expected to retain approximately 9.8 percent of Puma’s outstanding shares. As a result of the Placement, Puma’s free float is expected to be increased to approximately 61.7 percent.
Photo courtesy Puma