Kering said on Monday it was selling about 8.8 million shares that it owns in Puma, representing 5.9% of the German sporting good-maker’s share capital, 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.
Kering’s share price has recovered to its levels at the start of 2020, after plummeting by as much as 39% in March as the coronavirus pandemic shut stores and brought factories to a halt.
Since 2018, the group gradually reduced its stake in Puma after spinning off 70% 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% stake, and Kering with around 16%.
After the latest transaction, Kering will retain 9.8% of Puma’s outstanding shares, it said. Artémis was reported to have issued a convertible bond this summer that reduced its stake to around 25%, although the company could not be reached at the time to confirm the operation.
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This story was reported by WWD and originally appeared on WWD.com.