
German sportswear company Puma AG Rudolf Dassler Sport (OTC: PMMAF) may no longer be weighed down by its French parent company Kering S A/ADR (OTC: PPRUY).
France-based Kering, which owns Gucci, is planning to spin off Puma its sports brand in Germany to the conglomerate's shareholders in order to put more focus squarely on just its luxury brand.
"We are very pleased that Kering has proposed this way to reduce its stake in PUMA". The group's ambition is to continue to grow and develop its couture, leather goods, jewellery and watch businesses. "We would be able to carry on to invest in becoming the fastest sports brand in the world, create value for retailers, improve performance for athletes and excite consumers".
"The contemplated distribution of Puma shares to our shareholders would be a significant milestone in the history of the group", says CEO François-Henri Pinault.
Kering emerged as one of the big winners in a luxury goods revival a year ago as Chinese demand picked up, with a stellar turn at brand-of-the-moment Gucci helping earnings and other labels such as Yves Saint Laurent and Balenciaga.
Kering's CFO Jean-Marc Duplaix said that company found itself out of balance due to the outperformance in the luxury sector, adding that the group was also looking at its options to shed Volcom its other sportswear label.
Industry expert Matt Powell recently told Benzinga of Puma: "We are in a non-performance market; when performance was in fashion, Puma really struggled".
Kering will retain the 16% of shares outstanding, while Artémis, which holds 40.9% of Kering's shares, will become a long-term strategic shareholder in Puma with an ownership of around 29%. We are proud to have supported the turnaround of Puma, which now has unrivalled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth, led by its talented and passionate management team.
Puma's shares will not be publicly traded, but spread across several of Kering's investors.
Related News:
-
Markets Right Now: Energy stocks lead United States indexes higher
Companies are set to begin reporting their results for the last three months of 2017, and the pace will pick up later this week. France's CAC 40 fell 0.3 percent, the FTSE 100 in London added 0.2 percent and Germany's DAX lost 0.8 percent.Progress Software (PRGS) Issues Quarterly Earnings Results, Beats Expectations By $0.06 EPS
ValuEngine downgraded shares of Progress Software from a buy rating to a hold rating in a research note on Friday, December 1st. Tiaa Cref Investment Management Llc sold 86,990 shares as Progress Software Corp (PRGS)'s stock declined 0.96%. (NASDAQ:EPZM).Lindsay Lohan Steps Out in Style for Grandma's 94th Birthday
Special day: The Parent Trap star's mother and grandmother was also in attendance. "I'm discussing designing my own island in Dubai at the World Islands". -
Pitney Bowes Inc. (PBI)
Looking closer at shares of Pitney Bowes Inc (PBI ), we have recently noted that the Ultimate Oscillator reading is now above 60. Finally, ValuEngine upgraded Pitney Bowes from a "hold" rating to a "buy" rating in a research report on Monday, October 2nd.Why Are Rich People Spending $25 Per Gallon For "Raw" Drinking Water?
In case you haven't noticed, Silicon Valley is obsessed with health, or at least the appearance of health. These diseases are very, very nasty. "It stays most fresh within one lunar cycle of delivery", he said.Kendall Jenner says her anxiety causes 'full-on panic attacks'
The revelation came when when asked how she'd handle a son or daughter wanting to be famous and fashion-forward like their mother. As the world's highest-paid model , Kendall Jenner is under constant public scrutiny. -
New Pelican Spider Species Discovered In Madagascar
After analyzing the genitals, the scientists confirmed that they have discovered 18 new species of spider eating pelican spiders. Instead, they are active hunters - hence the name "assassin" - feeding exclusively on other spiders .Chicago Bridge & Iron (CBI) Receives $19.33 Average PT from Analysts
The Massachusetts-based Wellington Mngmt Grp Llp has invested 0% in Twenty-First Century Fox, Inc. (NYSE:CNS) for 22,492 shares. The broad General Contractors industry has an average P/S ratio of 71.31, which is significantly worse than the sector's 9.45.Federer has battle on his hands to defend Australian Open title
With so many players in contention and so much firepower, handling the stress will be the key, according to Mats Wilander. A rematch of last year's Australian Open semifinal with 2017's strongest finisher, Grigor Dimitrov , is on the cards. -
SDSU Study Finds Women Largely Underrepresented in Hollywood
The Celluloid Ceiling has tracked women's employment on top grossing films for the last 20 years. The statistic has not budged in the 20 years that Lauzen has been tallying the numbers.Brent crude oil price hits three-year high of $70 a barrel
As shale oil development trends are rather uncertain, it is possible that the upward trend in crude oil prices will continue. USA distillate stocks jumped 8.899 million barrels the week ending December 29 to 138.8 million barrels.Steve King takes part in Trump signing of bill combating opioid trafficking
Senator Edward Markey spoke to reporters after the bill signing. "And we're going to find the answer". Drugs are entering our country across our borders and even through our own postal system.