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Investing.com -- Puma SE (ETR:PUMG) shares fell more than 2% on Tuesday, giving back part of the gains from the previous session after reports that Artemis, the Pinault family’s holding company, is considering selling its 29% stake in the sportswear maker.
The stake, valued at about €930 million at Monday’s close, had risen in worth after Puma shares jumped 16% when Bloomberg first reported the possible sale.
“We view the potential disposal of Artemis’ 29% stake in PUMA as incrementally positive in an equity story that has been plagued by declining financial performance and relevance in an increasingly competitive sportswear industry,” said analysts at RBC Capital Markets in a note.
Artemis has reached out to potential buyers in Asia, the United States and the Middle East. Chinese sportswear groups Anta and Li Ning were named as possible bidders.
Artemis has been under pressure to reduce debt, which stood at €27 billion at the end of 2024.
Analysts said any deal would likely come with a modest premium to the current market value.
A sale at this point, however, would follow a sharp decline in Puma’s stock, which has dropped about 80% from its November 2021 peak.
Anta was described as a potential fit because of its multi-brand portfolio and acquisitions, including Jack Wolfskin earlier this year and a stake in Amer Sports. “ We do not believe Li Ning is an appropriate suitor given its mono-brand business model,” RBC said.
A buyer of Artemis’ 29% stake would not immediately gain control of Puma, since passing 30% would require a controlling shareholder position under market rules, and majority ownership would require at least 50%.
The development comes as Puma undergoes leadership changes. Arthur Hoeld, who became chief executive in April, is expected to present the company’s business review during third-quarter results on Oct. 30.
Analysts said Puma’s financial performance has weakened in recent years and the brand has lost ground in the competitive sportswear market.
They added that new leadership is expected to outline steps to stabilize revenue and earnings.