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.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

DocumentId: 2266487, ~/Articles/ArticleHandler.aspx, 7/29/2014 5:12:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...