Shareholders Selling 25 Million Shares of Michael Kors

Fashion house Michael Kors Holdings (NYSE: KORS  ) 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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Rich Duprey

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.


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12/1/2015 4:04 PM
KORS $42.89 Down -0.13 -0.30%
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