Anta will have to pay an additional sum as part of its acquisition of a majority stake in Puma if it launches a takeover bid of the German sportswear brand within a specified transfer period, based on regulatory filings with the Hong Kong Stock Exchange.
According to the disclosure late last month, when the Chinese apparel company announced that it would buy 29 percent of Puma for 1.8 billion, a clause in the agreement noted that any takeover attempt of Puma or a bid to purchase more shares within 15 months would result in the holding company Artemis banking another payout from the deal.
The China-based Anta agreed to purchase the portion of Puma that is owned by the Pinault family and controlled through Artemis. The transfer of their share would make Anta the largest stakeholder in the Puma in a deal expected to close by the end of the year.
The clause in the ongoing deal was put in place so Artemis would benefit from any turnaround and financial windfall directly tied to Puma after selling its sake following a full-year loss at the brand that weakened the value of its holding.
Anta has agreed to pay around $41 per share and said it will seek seats on the advisory board as soon as the deal closes. The in the disclosure, Anta also notes that priority will be placed on “preserving Puma’s strong brand identity and heritage, with an aim to help empower PUMA to fully realise its brand potential, stimulate its brand advantages and heritage, and create longterm value for global consumers and stakeholders.”
After months of speculation about the future of the company and potential suitors, Puma appears to have its lifeline following a rocky year that brought on a new CEO, sizable job cuts and a reassessment of its financial outlook amid a major turnaround effort. Anta was reportedly one of at least six companies which made serious offers for either the Artemis portion or for Puma outright.
In December, Puma took out $700 million in bridge loans and credit lines to help infuse cash into the brand in what it described was a plan for “increasing overall flexibility and headroom.”
