Monarchy Regency, the US media investor that held a controlling, 39-percent stake in German sporting goods maker Puma, announced last Monday it was selling the stock via a market placement. Puma chief executive Jochen Zeitz confirmed the share deal but gave few immediate details.
At Puma headquarters in Herzogenaurach, southern Germany, dpa quoted him as saying Monarchy Regency had been a “major investor” but, given Puma’s successes, its involvement was no longer vital to the company.
Monarchy Regency, whose main business is film and television production, gave no reason for its pullout.
Zeitz termed the outcome a “good solution,” saying the stock would profit in the intermediate- and long-term because it would increase the shareholder base and lead to more active trading of the shares. “It makes the stock more attractive to institutional investors who need the guarantee that a certain stock volume can be sold on the market very quickly,” he said. He said the disinvestment had no effect on continuing cooperation with the US media group.
A Puma spokesman confirmed that product placement of Puma shoes and clothing in films and TV series made by Monarchy Regency over several years had been a major benefit to the manufacturer and had helped establish it as a “lifestyle” brand.
The spokesman said a large proportion of the shares had found buyers last Monday with institutional investors such as insurance companies and investment funds leading the way in a placement method known as an accelerated bookbuilding procedure.