Shares in Puma surged after Bloomberg reported that the holding company of France's Pinault family is weighing options for its 29% stake in the German sportswear maker including sounding out potential buyers.
The Pinault's holding company, Artemis, which controls Gucci-owner Kering and other businesses in the luxury, arts and entertainment industries, has become the subject of increased scrutiny from investors over high debt accumulated across its portfolio as it sought to diversify investments.
A spokesperson for Artemis, Puma's biggest shareholder, declined to comment. Puma did not immediately reply to a request for comment.
Puma's shares, which have lost over 60% of their value over the past two years, were up 18% yesterday.
Bloomberg, citing unnamed sources, reported the Pinaults were working with advisors to assess options for the asset and had reached out to potential buyers.
The stake is worth roughly €800m, based on Puma's market capitalisation provided by LSEG which does not include yesterday's price surge.
Artemis had issued an exchangeable bond worth €500m that was due earlier this year in a bid to downsize its holding. But it needed to pay investors back in cash rather than company shares due to Puma's poor share price performance.
Artemis said last month it was not facing any liquidity problems due to a drop in dividends from Kering and other assets, including Puma.
Artemis acquired its stake in Puma following a reshuffle of Kering's portfolio in 2018 when Kering, which until then also controlled Puma, was transformed into a pure luxury player.
Reporting by Reuters
