French luxury group Kering plans trim its remaining stake in Puma by issuing bonds worth $550 million that can be exchanged for shares in the German sportswear brand. These bonds will be equivalent to 3.5 per cent to 3.7 per cent of the share capital of Puma, which has been performing strongly, thanks in part to sports partnerships including with English soccer club Manchester United, and celebrity marketing deals.
Kering, which owns fashion brands like Gucci, Saint Laurent and Balenciaga, still has a 15.7 per cent stake after spinning off 70 per cent of its stake to shareholders last year. These investors include Artemis, the holding company for the Pinault family that founded and controls Kering, and which is now Puma's leading investor with a stake of just under 29%.
In recent years Kering has been increasingly focused on its high-margin luxury businesses, but even within this portfolio it has disposed of smaller brands like Christopher Kane.
