Luxury conglomerate Kering, helmed by François-Henri Pinault, has recently announced its decision to sell 5.9% of its stake in sportswear giant Puma. This move aligns with Kering’s ongoing strategy to refocus on its luxury brands and distance itself from its investment in Puma, which was acquired back in 2007.
In 2018, Kering sold 70% of its Puma shares to shareholders, reducing its ownership to approximately 16% of the renowned sports equipment brand. Since then, Kering has continued to reduce its stake, and the company now plans to sell an additional 5.9% of its shares, ultimately bringing its total ownership down to a mere 4%.
The sale of these 8.9 million Puma shares is anticipated to generate a substantial sum of around €805 million ($964 million) for Kering. At a price of €90.3 per share, the funds obtained from this sale will be utilized to reinforce the group’s overall financial structure and support its general needs. While Kering hasn’t officially commented on its future plans, industry rumors are circulating regarding a possible new luxury acquisition.
In line with its strategic vision of consolidating its position within the luxury sector and exploring fresh growth opportunities, Kering recently ventured into the luxury second-hand marketplace by becoming a 5% shareholder in Vestiaire Collective. This investment further emphasizes Kering’s commitment to its long-term objectives and its dedication to capitalizing on new avenues for expansion.
Useful Links:
1. Kering Official Website
2. The Wall Street Journal – Kering Sells Stake in Puma
