French luxury goods group Pinault-Printemps-Redoute (PPR) today announced its decision to launch a voluntary public takeover offer to the shareholders of PUMA AG. PPR had previously reached an agreement through one of its subsidiaries with PUMA’s main shareholders Günther and Daniela Herz, and their holding company Mayfair, on the purchase of their stake. The move secured PPR approximately 25.14 per cent of the PUMA shares (equivalent to approximately 27.14 per cent following PUMA AG’s decision on April 5, 2007 to cancel own shares). The German sports goods manufacturer estimates PPR’s offer to be worth more than 5 billion Euros. In an initial statement, the Board of Management of PUMA AG welcomed PPR’s plans. PUMA would receive the support of a financially strong and leading international company, according to one press release. It would also benefit from PPR’s global positioning, strong portfolio of premium brands and expertise in the retail business.
According to PUMA, the consummation of the agreement between Mayfair and PPR is still subject to approval by the antitrust authorities.
PPR’s owns luxury brands such as Yves Saint Laurent and Gucci. PPR, which reportedly generates most of its sales in the retail business, plans to shift its focus more to luxury products. At the beginning of 2007 the group confirmed it had sufficient cash resources and unused credit lines to carry out medium-sized to large takeovers.
Gleiss Lutz advised the Board of Management of PUMA AG on the transaction. Gleiss Lutz’ team consisted of Dr. Jobst-Hubertus Bauer, Dr. Jan Bauer, Dr. Christian Arnold and Dr. Stefan Stehle.
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