French luxury goods maker PPR takes major stake in Germany's Puma

Jul 17, 2007, 11:43 GMT

Herzogenaurach, Germany - French luxury goods group PPR holds a 62.1 per cent in German sportswear maker Puma after an extended share offer expired, the two companies said Tuesday.

PPR, owner of the Gucci and Yves Saint Laurent fashion brands, bought a 27.1 per cent stake in Puma in April and increased it to 33.2 per cent during an initial share offer that ran out in June.

'We are pleased that the Puma shareholders have with their vote supported the junction of Puma with the PPR group and set the basis for a successful cooperation,' said Puma chief executive Jochen Zeitz.

He said Puma would take advantage of the new set-up to invest into brand-building, enabling the company with the leaping cat logo to strengthen its position in the sport-lifestyle market.

A statement released by the German company welcomed the fact that 'a significant number of Puma shareholders followed the recommendation of the board of management to accept the offer price per share of 330 euros (452 dollars) and to sell their Puma shares.'

Many shareholders complained at the time that the offer was too low and held out in the hope that PPR would make an improved offer, which did not happen.

But Puma, based in the southern town of Herzogenaurach, said 330 euros was well over the weighted average for Puma stock in the three months before the bid. Investment banks also advised that it was an adequate price.

The deal, worth an estimated 7.1 billion dollars, cements Puma's position as the world's third-biggest sporting goods manufacturer after market leader Nike and German rival adidas.

PRR shares rose 0.65 per cent in morning trading Paris to 131.69 euros, while Puma shares climbed 0.71 per cent to 320.25 euros on the mid-cap MDAX in Frankfurt.