Kering to spin off Puma to its own shareholders
Kering
FRANKFURT/LONDON (Reuters) -  Gucci-owner Kering (PRTP.PA)  plans to spin off German sports brand Puma (PUMG.DE) to the French conglomerate’s shareholders as  it  sharpens the group’s focus squarely on its luxury brands.
 Kering  said  it  planned to distribute 70 percent of Puma shares in kind to  its  investors  leaving  it  with only a 16 percent stake in the sportwear group  confirming an exclusive Reuters report.
 Kering  is a little more than 40 percent controlled by the French Pinault family  who would receive about 29 percent of the sporting goods company  while Puma’s free float would stand at about 55 percent.
Shedding Puma  meanwhile  would turn  Kering  into a pure player in the high-margin luxury business  where  it  rivals larger peers such as French conglomerate LVMH (LVMH.PA).
 “Kering  would dedicate  itself  entirely to the development of  its  luxury houses ”  Kering  Chairman and CEO Francois-Henri Pinault said in a statement.
Puma struggled for years after it was bought by Kering for 5.3 billion euros ($6.4 billion) in 2007  but recent improved performance has raised expectations that the French group would sell its stake this year.
Puma’s shares rose by 45 percent over the past year  bringing its market capitalisation to 5.3 billion euros  back at the level at which  Kering  bought.
 Kering  emerged as one of the big winners in a luxury goods revival last year 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.
FRANKFURT/LONDON (Reuters) -  [TGT])  plans to spin off German sports brand Puma (PUMG.DE) to the French conglomerate’s shareholders as  it  sharpens the group’s focus squarely on its luxury brands.
 [TGT]said  [TGT]  planned to distribute 70 percent of Puma shares in kind to  [TGT]  investors  leaving  [TGT]  with only a 16 percent stake in the sportwear group  confirming an exclusive Reuters report.
 [TGT]is a little more than 40 percent controlled by the French Pinault family  who would receive about 29 percent of the sporting goods company  while Puma’s free float would stand at about 55 percent.
Shedding Puma  meanwhile  would turn  Kering  into a pure player in the high-margin luxury business  where  [TGT]  rivals larger peers such as French conglomerate LVMH (LVMH.PA).
 “Kering  would dedicate  itself  entirely to the development of  its  luxury houses ”  [TGT]Chairman and CEO Francois-Henri Pinault said in a statement.
Puma struggled for years after it was bought by Kering for 5.3 billion euros ($6.4 billion) in 2007  but recent improved performance has raised expectations that the French group would sell its stake this year.
Puma’s shares rose by 45 percent over the past year  bringing its market capitalisation to 5.3 billion euros  back at the level at which  [TGT]bought.
 [TGT]emerged as one of the big winners in a luxury goods revival last year 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.