PUMA to access PPR's core skills & resources to support development

10 Apr '07

3 min read

PPR announces that it has entered, through its subsidiary SAPARDIS, into an agreement with Mayfair Beteiligungsfondsgesellschaft I mbH to acquire its 27.1% stake in PUMA for EUR330 per share in cash excluding the 2006 dividend of EUR2.5 per share, implying a total consideration of EUR1.4 billion.

Following this acquisition, PPR intends to launch a friendly takeover offer in cash on the remaining outstanding PUMA shares at the same price of EUR330 per share. The offer price values PUMA at EUR5.3bn (equity value), implying a 24% premium on the undisturbed one-month weighted average share price (as of April 3rd). The Management Board of PUMA fully supports this friendly transaction and intends to recommend the offer after reviewing the offer document.

Commenting on the transaction, François-Henri Pinault, Chairman and CEO of PPR, said: “I am delighted to have reached an agreement with Mayfair supported by PUMA which creates the basis for a combined future for our two Groups. This friendly transaction represents an exciting development for PPR and a milestone in our strategy of profitable growth. I am confident that PPR is the ideal partner to support PUMA in its current development phase to become a global iconic sportlifestyle company.”

Jochen Zeitz, Chairman and CEO of PUMA AG, said: “As we continue the execution of our Phase IV strategy, we are convinced that PPR's proposal is a unique opportunity to get additional long term support to achieve our global targets and our mission to become the most desirable sportlifestyle company in the world. My colleagues and I have carefully considered this proposal by PPR and subject to review of the offer document we will recommend it to our shareholders. We strongly believe that this friendly transaction is in the best interests of the company and that the offer price is fair to all PUMA shareholders.”

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