Kering shares rose to record highs, after the French luxury goods group announced plans to spin off German sports brand Puma to its shareholders in order to focus squarely on its more upmarket brands.
The group’s shares were up 0.9 percent at 412.40 euros in early session trading, with the stock at one point touching a record intraday high of 415 euros.
Kering said that it planned to distribute 70 percent of Puma shares to its investors, leaving it with only a 16 percent stake.
Analysts said, if approved by shareholders, the transaction would increase Puma's free-float making it investable again for the first time in around 10 years.
KERING, founded in France in 1963, offers a luxury clothing group. Starting with François Pinault's timber trade, Kering’s current portfolio includes world-famous luxury brands like Gucci, Yves Saint Laurent, Balenciaga and Alexander McQueen. The acquisition, which changed the strategy of the company, took place in 1999 when Gucci group bought 42% of its control for $ 3 billion. In 2004, the company owned 99.4% of the Italian luxury brand. In 2007, Puma developed a Sport & Lifestyle portfolio by buying Cobra Golf in 2010 and Volcom in 2011.
PUMA SE is a European multinational company that designs and manufactures athletic and casual footwear, apparel and accessories, headquartered in Herzogenaurach, Bavaria. PUMA is the third largest sportswear manufacturer in the world. The company was founded in 1948 by Rudolf Dassler. Since 2007 PUMA has been part of French group Kering.