PARIS – Kering is issuing 500 million euros in bonds that can be exchanged for shares in Puma due in 2022. The bond issue represents the equivalent of between 3.5 percent and 3.7 percent of the German sportswear firm’s share capital.
Kering holds a 15.7 percent share of Puma after spinning off a 70 percent stake to its shareholders, including Artemis, the Pinault family group that controls Kering, last year in order to focus on its core luxury activity.
The bonds will be issued at a principal amount of 100,000 euros each and redeemable on Sept. 30, 2022, or earlier under certain conditions. The initial exchange price will represent a premium of between 30 percent and 35 percent above Puma’s average reference share price on Sept. 25.
The funds raised will be used for “general corporate purposes,” Kering stated.