Kering SA, the owner of luxury brands such as Gucci and Saint Laurent, decided to sell its 5.9% stake in Puma SE; the equivalent to a $1 billion share in the company. In total, the French company sold 8.9 million shares to the value of 90.3 euros per share. This transaction comes after a sale of the same size in October 2020.
The decision to sell its shares in Puma comes after Kering SA decided to change its strategic approach, rather than choosing to focus on high-end luxury fashion brands. Since taking control of the company, the Pinault family has decided to divert all attention to pushing its portfolio upmarket.
Luca Solca, an analyst at brokerage firm Sanford C. Bernstein, had the following to say in an email: “This is an excellent move. It brings Kering closer to making more relevant luxury-focused M&A deals.”
According to representatives of the organization, Kering will be using the proceeds from the sale to fund general corporates activities as well as boost its financial capabilities. A portion of the money will be used towards future acquisitions.
