>>> PUMA +10% - on speculation Kering has found a buyer for its' 85% stake. We’ve spoken with the company and they say they are not in the process of divesting the puma, at this point remains a core asset for them
. However, we see PUMA divestment as making strategic sense for KER and that it would be the best outcome.
. In our view Puma would be a more attractive asset to a sporting goods retailer, brand or lifestyle conglomerate that could better access a strong distribution network & extract synergies.
. Assuming a sale price of 1x rev, we believe this could lead to a €1.5bn capital return & 15% EPS accretion for Kering.