French PPR buys stake in Puma

French luxury goods group PPR has agreed to buy a 27.1-percent stake in German sportswear specialist Puma and launch a full takeover offer for the group, the two companies said.

French PPR buys stake in Puma

French luxury goods group PPR has agreed to buy a 27.1-percent stake in German sportswear specialist Puma and launch a full takeover offer for the group, the two companies said on Tuesday.

The bid from PPR, which owns a range of top-end fashion brands including Yves Saint Laurent and Gucci, values the German company at about 5.7 billion euros (7.6 billion dollars).

Shares in Puma soared more than 8.0 percent at the start of trading on Tuesday to 340 euros, making them the biggest gainers on the mid-cap MDAX index on the Frankfurt stock exchange.

Pinault-Printemps-Redoute (PPR) said in a statement that it had agreed to buy a 27.1-percent stake from Mayfair Beteiligungsfondsgesellschaft, an investment vehicle for the Herz family, for 330 euros per share.

"Following this acquisition, PPR intends to launch a friendly takeover in cash on the remaining outstanding Puma shares at the price of 330 euros per share," the statement said.

With a total 17.234 million shares in issue, the offer valued Puma, the world's number three sportswear maker after Nike and Adidas, at 5.7 billion euros.

PPR put the total offer price at 5.3 billion euros.

Puma has annual sales of 2.4 billion euros and employs a workforce of 7,800 worldwide.

PPR has annual sales of 17.9 billion euros and a workforce of 78,000.

Puma "fully supports this friendly transaction and intends to recommend the offer after reviewing the offer document," PPR insisted.

In its own statement, Puma welcomed the offer, which it said gave it the support of "a financially strong and leading international company".

Puma said it would also "benefit from PPR's global positioning, strong portfolio of premium brands and expertise in the retail business."

The Puma management board "is convinced that PPR, as one of the world's top fashion and retail companies, will be the perfect partner for us," it said.

"Both companies have a European background and ideally complement each other with regard to their global perspective. With the support of PPR, we plan to strengthen our position as the leading company in the sport lifestyle market with a continued focus on long-term sustainable growth."

Mayfair, the holding company of Guenter and Daniela Herz, said that while it had originally seen the Puma stake as a long-term investment, "the faster-than-expected development of Puma and the friendly nature of PPR's offer have led Mayfair to accept a transaction."

Puma said PPR's offer was "in the best interests of the company and that the announced offer price per share of 330 euros is fair."

It said its board of management planned to recommend the offer to shareholders.

PPR said that no job cuts were planned as part of the takeover.

"In the context of the planned transaction there will be no changes with regard to staffing," said PPR chief executive Francois-Henri Pinault.

Güncelleme Tarihi: 20 Eylül 2018, 18:16
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