(Corrects to say Puma would offer less discounts, not more discounts, in 15th paragraph) By Scott Murdoch and Roushni Nair Jan 27 (Reuters) - China's Anta Sports Products said on Tuesday it would buy a 29.06% stake in Puma from the Pinault family for 1.5 billion euros ($1.8 billion), making it the biggest shareholder in the German sportswear maker. The Hong Kong-listed company will pay 35 euros per share in cash, a 62% premium to Puma's 21.63 euros closing share price on Monday, up nearly 17% in the session. Anta shares were up 1.3% at midsession on Tuesday after jumping 3.4% earlier in trading. The stake sale comes as the German firm seeks to revive its fortunes after it lost ground to Nike and Adidas. It also faces competition from fast-growing brands like New Balance and Hoka. Reuters was the first to report the deal earlier this month. "We believe Puma's share price over the past few months does not fully reflect the long-term potential of the brand," Ding Shizhong, Anta's chair, said in a statement. "We have confidence in its management team and strategic transformation." The deal is expected to help Puma increase its sales in the lucrative mainland Chinese market as Anta expands its multi-brand strategy. The purchase will also help Anta in its quest to become a more globalised business. Anta, which has a track record of acquiring and revamping Western sports and lifestyle brands, said Puma was a global business which was complementary to its existing brands and could increase its international competitiveness. Anta owns Fila, Jack Wolfskin, Kolon Sport and Maia Active. It is also the largest shareholder of Amer Sports which includes Salomon, Wilson, Peak Performance and Atomic. "Anta's strong post-acquisition execution and operational empowerment have also given us confidence in its revitalization of Puma business in the future," Citigroup analysts said in a research note on Tuesday. Anta said it would seek Puma board seats once the deal was finalised but would not seek a full takeover of the company. The transaction comes as the German sportswear group struggles to revive sales and investor confidence under its new CEO, Arthur Hoeld. Puma has been under pressure as demand weakened, and recent sneaker launches, including the Speedcat, failed to generate the momentum executives had hoped for. Hoeld, who took over last year, has outlined a turnaround focused on brand heat, performance products, and cost discipline. In October, Puma said it would provide less discounts, improve marketing and cut its product range, in addition to cutting 900 jobs as part of a turnaround strategy. Reuters reported in early January that Anta had offered to buy about 29% of Puma from the Pinault family and had secured financing for the acquisition, although talks had at the time stalled over valuation. Artemis, run by Francois-Henri Pinault, chairman of luxury group Kering, had previously described its Puma stake as non-strategic. The Pinault family took the holding from Kering in 2018, when the group repositioned itself as a pure luxury player. The deal is subject to antitrust clearances, shareholder approval at Anta, and regulatory approvals in China and other jurisdictions. Anta said it expects to convene an extraordinary general meeting, with closing targeted after conditions are met. ($1 = 0.8421 euros) (Reporting by Scott Murdoch in Sydney and Roushni Nair in Bengaluru; Editing by Rashmi Aich, Anne Marie Roantree and Thomas Derpinghaus) (The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
