Adidas Shares Drop As News Of Top Investor GBL Lowering Its Stake Breaks Out – Market News Wire 24
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Adidas Shares Drop As News Of Top Investor GBL Lowering Its Stake Breaks Out

Adidas stock price fell by 3% when news broke that GBL, one of its top shareholders, had plans underway to sell about 10% of its holding in the company, as per three traders. The current investment is valued at over $4.5 bn.

GBL, which is a Belgian investment company, is selling 10% of its holding, which are around 1.37 million shares or 7.5% of the company. The offer price would be at €257.75, which is around 1.7% lower than the previous closing price of the company. The sale’s worth is currently at around €353.1 million.

Adidas and GBL, whose shares had hit highs recently, did not comment on the news. Adidas is currently holding share buyback program, to take back €3 billion worth of stock between 2018 and 2021. This has slowly pushed GBL’s stake up.

The share price of Adidas has nearly doubled after GBL began investing in it. Kasper Rorstedm the CEO of Adidas, is focusing on increasing profitability, expansion plans in China and North America & increasing online sales.

GBL has stated via its annual report that it does not want one asset alone to be responsible for 15–20% in its portfolio. It intends to diversify, to avoid risk exposure. At the moment, Adidas makes up over 17.5% in its portfolio, as on March. This was due to the stock price zooming to never before seen highs during this year. Adidas shares fell by 2.6% to €255.4. This caused the DAX index to fall by 0.5% as well.

GBL was established by Albert Frere, the richest man in Belgium, who died recently in December. It invested money in Adidas during 2015, when it bought around 3% stake in the company.

GBL also has stakes in Total, Pernod Ricard and Lafarge Holcim, which are among the biggest companies in Europe.

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