Shareholders Selling 25 Million Shares of Michael Kors
Feb 20th 2013 2:52PM
Updated Feb 20th 2013 3:55PM
Fashion house Michael Kors Holdings has announced it will initiate a secondary offering of 25 million shares on behalf of certain investors, including the company's namesake founder, who will sell 3 million of his own shares, bringing his ownership stake down to 2.4%, or 4.9 million shares, from its current 3.9%. The stock is at an all-time high since going public in December 2011.
Other investors selling stock include Kors' largest investor, Sportswear Holdings Limited, a global private equity firm, which will sell 19.7 million shares, or almost two-thirds of its stake, as well as a trust for the children of the company's CEO that will sell 2 million shares.
As of Feb. 13, the company had some 200 million ordinary shares issued and outstanding.
Sportswear Holdings, which purchased a controlling stake in Kors in 2003, is a Hong Kong-based private equity firm that was also behind the rise of another fashion nameplate in the 1990s, Tommy Hilfiger, which ended up being acquired by PVH in 2010 for approximately $3 billion.
Michael Kors Holdings will not receive any proceeds from the sale of the shares by its investors.
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