Shareholders Selling 25 Million Shares of Michael Kors
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.
The article Shareholders Selling 25 Million Shares of Michael Kors originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.