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Kering to offer Puma shares to investors instead of a cash dividend

Luxury group Kering has said it will offer its shareholders the option of receiving shares in sports brand Puma in place of cash dividends. Its efforts to inform shareholders about the Puma option will begin immediately.

In a statement on January 11, the Paris-based group said it intends to retain a 16% stake in Puma while the parent company of Kering, Artémis, will retain another 29% of equity in Puma; the statement said Artémis intends to be “a long-term strategic shareholder of Puma’s”. This means 55% of Puma shares will make up what Kering called “the free float”.

“With Puma’s unique DNA, heritage of innovation and creativity, the ongoing successful implementation of its Forever Faster transformation plan has started to deliver results,” Kering said. “The brand is enjoying strong revenue growth momentum and achieving an improvement in its profitability. Furthermore, Puma’s management team is fully committed to pursue its successful strategy, and continue to deliver the growth and profitability potential of the brand.”

Reuters quoted Puma as saying in response that it will welcome having an enhanced free float as this will strengthen its position in front of capital markets. It said the announcement will not affect its current strategy.

Image, courtesy Puma, shows Atlético Madrid and French national team footballer, Antoine Griezmann.

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