Anta Sports to Become Largest Shareholder in Puma
The iconic sportswear label had been facing difficulties prior to the transaction, with its stock trading near a decade-low.
The Chinese company will obtain its shares from the Pinault family, one of France’s wealthiest dynasties. The family controls the luxury group Kering, owner of brands such as Bottega Veneta, Gucci, and Yves Saint Laurent. The Pinaults first took a controlling stake in Puma in 2007 but have steadily reduced their holdings over the years.
Headquartered in Fujian, Anta agreed to pay the Pinault family €1.51 billion ($1.8 billion) in cash for 43.01 million shares at €35 each. This offer represented a 62% premium over Puma’s closing price of €21.63 on Monday, causing the German company’s stock to jump 17% following initial news of the deal, before eventually settling 9% higher.
Puma has faced mounting challenges amid rising competition from rival sports brands. Last year, the company announced plans to cut roughly 1,400 jobs and implement a turnaround strategy that included limiting discounts and reducing its product lineup.
Anta plans to strengthen Puma’s footprint in China. “Puma has more potential in the Chinese market, where they are underrepresented with only 7% of their global revenues. We have a lot of insight on how to make Puma more successful in China,” Wei Lin, the firm’s global vice president for sustainability and investor relations, told a media outlet.
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