NEW YORK — Pinault-Printemps-Redoute SA added another point to its stake in Gucci Group NV and now holds 64.7 percent of the luxury house.
This story first appeared in the July 23, 2003 issue of WWD. Subscribe Today.
In a filing with the Securities and Exchange Commission, PPR disclosed that between June 11 and July 18, it acquired just more than 1 million shares of Gucci stock for total consideration of about $95.8 million.
The purchases were expected as PPR steadily has built its Gucci stake toward 70 percent, its target for the end of this year, and also because PPR, as reported, had authorized Credit Agricole Indosuez Cheuvreux to buy up to 1 million Gucci shares on PPR’s behalf between June 11 and July 6. Additionally, PPR chief executive Serge Weinberg told shareholders at Gucci’s annual meeting last week that the stake had moved up to 64.5 percent.
The bulk of the recently acquired shares were purchased on the Amsterdam Stock Exchange. PPR spent $92.7 million for 968,856 shares in Amsterdam for an average purchase price of $95.70. Dollar figures have been converted from the euro at current exchange. In local currency, PPR acquired the shares for 81.8 million euros.
PPR also bought 31,200 shares on the New York Stock Exchange for $3.1 million, or an average of $98.10 a share. While the shares bought in Amsterdam spanned the entire trading period reported to the SEC, the NYSE purchases all came on July 1 and 2.
PPR has pledged to buy all Gucci shares it doesn’t own next March for $101.50 a share, but that amount will be diminished by 13.5 euros a share, thanks to a special payment to Gucci shareholders by Gucci.