By Tassilo Hummel
PARIS (Reuters) -Artemis, the Pinault family's holding that controls Gucci-owner Kering, will not sell its 29% stake in sports brand Puma at the current market value and is not engaged in talks over a deal, a source close to the firm told Reuters on Thursday.
The comments, the first from a source with detailed knowledge of the private firm's operations, come after Bloomberg reported in August that Artemis was sounding out potential buyers for its $960 million Puma stake.
Puma shares
surged 15% on the August 25 report but have since lost most of those gains.
The person, who declined to be named as the information was private, said Artemis had been approached by many potential suitors for its stake, including private equity firms and sector peers, but that the firm was not negotiating anything.
"Would we sell at this level? Never in our lives... We consider that Puma is worth much more than that," the person said, though echoed public comments from Artemis chairman Francois-Henri Pinault this week that Puma was not "strategic".
Puma's shares have lost over 60% of their value over the past two years, as the brand lost market share for its shoes and outfits and struggled to boost interest in its new sneaker models like the Speedcat.
The source said Puma would not remain in Artemis' portfolio "forever", but added that now was not the right time to sell.
Puma declined to comment when contacted by Reuters.
Pinault's investment vehicle, which next to Gucci-owner Kering also controls auction house Christie's and Hollywood talent agency CAA, has become the subject of investor scrutiny over high debt accumulated across its portfolio as it sought to diversify amid a slide in luxury sales.
The source close to Artemis declined to name specific investors but said there was strong appetite from sector peers and financial investors "seeking to position themselves."
The Pinault family acquired its Puma stake in 2018 from Kering when the luxury group spun off the holding and was transformed into a pure luxury player focused on brands like Gucci and Saint Laurent.
The source said the firm had full trust in newly appointed Puma CEO Arthur Hoeld to turn the company around, and that it was not facing any debt maturities this year or next that would require it to sell assets.
(reporting by Tassilo Hummel, additional reporting by Helen Reid; Editing by Adam Jourdan and Susan Fenton)
