PARIS — Kering said Wednesday its board of directors has unanimously approved the conglomerate’s plans to demerge and float Fnac, a struggling retailer of books, music and home electronics, paving the way for a listing on the Euronext Paris stock exchange on June 20.
The plan, unveiled in October 2012, has also been approved by the works councils of Groupe Fnac and Kering. Formerly known as PPR, the group recently unveiled plans to change its name to mark its transformation into a pure player in apparel and accessories.
Parent of brands including Gucci, Balenciaga, Stella McCartney, Puma and Volcom, Kering is also disposing of its Redcats catalogue businesses. It will propose the Fnac spin-off to its shareholders at the annual ordinary and extraordinary general meetings, due to be held on June 18.
Kering will propose to pay shareholders a supplementary cash divided of 2.25 euros, or $2.95, and a dividend in the form of one Groupe Fnac share for every eight Kering shares held.
Within this framework, Kering will distribute to its shareholders a maximum of 15,764,588 Groupe Fnac shares, representing slightly less than 95 percent of Groupe Fnac’s share capital. The distribution of Groupe Fnac shares will be treated for tax purposes as a dividend distribution to Kering shareholders, it said.
The group paid out an interim dividend of 1.50 euros, or $2, on Jan. 24.
Founded in 1954 and owned by PPR since 1994, Fnac operates about 167 stores in France, Spain, Portugal, Brazil, Belgium and Switzerland. In 2012, it posted consolidated revenues of 4.1 billion euros, or $5.3 million, and had more than 16,000 employees.
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As reported, Kering chief Françios-Henri Pinault hopes to triple the size of the group’s core luxury and sport & lifestyle divisions by 2020 and increase revenues to 24 billion euros, or $31.9 billion at current exchange.
PPR, originally an acronym for Pinault-Printemps-Redoute, began edging out of its roots in retail in 2006 when it sold the Printemps retail chain, following up with a stock market listing for African trading company CFAO in 2009 and a sale of the Conforama furniture chain to Steinhoff International in 2010.