Bloomberg News

PPR Said to Seek Value of 400 Million Euros for Fnac in Spinoff

June 03, 2013

PPR SA (KER), the French owner of Gucci trying to spin off its Fnac book and electronics stores, is seeking a valuation of about 400 million euros ($519 million) for the business, people with knowledge of the process said.

Credit Agricole SA (ACA), Natixis SA and Societe Generale SA are managing the sale now being taken to investors, while Lazard Ltd. (LAZ:US) is advising PPR and Rothschild is advising Fnac, said the people, asking not to be named while the process is under way.

Existing PPR investors will be given Fnac shares as part of the spinoff, planned in June. The price will be set after the company’s annual shareholders meeting on June 18.

Spinning off Fnac and selling online retailer La Redoute will help complete PPR’s transformation into a company focused on luxury and sporting goods. The French owner of Puma will change its name to Kering this month to mark its shift.

PPR, whose brands include handbag maker Bottega Veneta and surf and snowboarding clothier Volcom, aims to boost its share price, which has traded at a discount to its luxury peers because of its retail businesses.

PPR reported first-quarter revenue that trailed analysts’ estimates amid a more volatile business climate in Europe.

Representatives for PPR, Lazard, Societe Generale, Credit Agricole, Rothschild and Natixis declined to comment.

French companies including cable operator Numericable SAS and web-advertising company Criteo SAS are lining up share sales as investors return to European markets.

To contact the reporter on this story: Ruth David in London at rdavid9@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net; Jacqueline Simmons at jackiem@bloomberg.net


Soul Searcher
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • LAZ
    (Lazard Ltd)
    • $45.8 USD
    • 0.82
    • 1.79%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus