Luxury brands owner Kering has decided to give up its majority stake in sports brand Puma to focus on its luxury offerings. This will see the distribution of 70% out of its 86.3% shares to its shareholders. The completion of the transaction will see Kering retain around 16% of Puma shares outstanding.
Meanwhile, Groupe ArtĂ©mis, which holds 40.9% of Keringâ€™s shares, would become a â€ślong term strategic shareholder of Pumaâ€ť with a 29% share. Final terms of the transaction are currently under review, and will be submitted to the vote of Kering shareholders 26 April 2018.
In a press statement confirming the move, the move would enable Kering to â€śreinforce its status as a leading pure player in luxuryâ€ť and give them â€śan enhanced, best-in-class profitabilityâ€ť. This will allow it to continue in its plans to grow and develop its brands specialising in couture, leather goods, jewellery and watches. It will also leverage on its â€śhigh cash-flow generation and strong financial positionâ€ť. The move will also benefit Kering shareholders from an increased free float and stock market visibility.
â€śWe have laid strong foundations for a bright future for Puma. The full support of both ArtĂ©mis, which would become Pumaâ€™s main shareholder, and Kering, as a significant minority shareholder, reflects a strong confidence in the companyâ€™s ability to continue to deliver its strategic and financial objectives,â€ť FranĂ§ois-Henri Pinault, chairman and CEO of Kering, said.
Brands currently under Kering include Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin and Ulysse Nardin. Sports and lifestyle brands under Kering include Volcom and Cobra.
Marketing has reached out to Kering for comment.