pounds 100m stake for Louis-Dreyfus

JOHN SHEPHERD

Robert Louis-Dreyfus will personally hold a pounds 100m stake in Adidas following the flotation of the German sports company in which he fronted a management buy-in two years ago.

The flotation, the second- largest by a German company, has been oversubscribed 11 times. The 27.3 million shares on offer have been priced at DM68 (pounds 30.56) each, right at the top of the expected range, which started at DM59.

Adidas is valued at DM3.1bn (pounds 1.4bn) by the flotation price. Sogedim, a company controlled by Mr Louis-Dreyfus, will retain a 30.8 per cent stake, worth pounds 424m, in Adidas.

Mr Louis-Dreyfus owns 24 per cent of Sogedim, and has agreed not to sell any more Adidas shares for a year.

The scramble for shares was not confined to German institutions and nationals, who bought almost a third of the shares on offer. UK institutions bought 20 per cent, and demand was heavy in America, home to two of the company's biggest rivals - Nike and Reebok.

Shares will be listed on the Frankfurt bourse, and they are also expected to be quoted on the Seaq International service offered by the Stock Exchange. A listing in Paris is also planned.

Most of the money raised will be used to repay loans from venture capitalists, led by Credit Lyonnais, who funded the leveraged 1993 buy-in. The original amounts loaned to Mr Louis-Dreyfus, a former Saatchi & Saatchi chief executive, and his co-investors, has never been disclosed.

The flotation caps an eventful few years for Adidas, which was in considerable financial trouble when it was run by Bernard Tapie, the disgraced former football manager and French politician.

Pentland Group, the UK sporting goods company that made hundreds of millions of pounds in the Eighties from an investment in Reebok, abandoned a pounds 215m takeover bid for Adidas in 1992 when it uncovered "serious problems" after spending three months examining the books.

Adidas eventually reported a loss of DM135m for 1992 on turnover of DM2.7bn. However, the company's fortunes have changed sharply since then and in 1994 sales of DM3.2bn yielded taxable profits of DM151m.

The recovery has continued, and profits in the first six months of this year from sales of football boots, footballs and other sports kit exceeded the total for the whole of 1994 at DM160m.

Adidas, best known for its football boots, recently signed a sponsorship deal with Newcastle United, current leaders of the Premier League in England. Other sponsorships have been signed with the Olympic squads for Germany, France and Great Britain.

PROMOTED VIDEO
News
Teeth should be brushed twice a day to prevent tooth decay
education
News
Bryan Cranston as Walter White, in the acclaimed series 'Breaking Bad'
news
Sport
footballChelsea 6 Maribor 0: Blues warm up for Premier League showdown with stroll in Champions League - but Mourinho is short of strikers
News
Those who were encouraged to walk in a happy manner remembered less negative words
science
Arts and Entertainment
Princess Olga in 'You Can't Get the Staff'
tvReview: The anachronistic aristocrats, it seemed, were just happy to have some attention
News
Renee Zellweger as Bridget Jones
i100
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech

Board creates magnetic field to achieve lift

News
There have been various incidents of social media users inadvertently flouting the law
news

Life and Style
Stack ‘em high?: quantity doesn’t always trump quality, as Friends of the Earth can testify
techThe proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
News
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
i100
Sport
CSKA Moscow celebrate after equalising with a late penalty
footballCSKA Moscow 2 Manchester City 2: Premier League champions let two goal lead slip in Russia
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Helpdesk Analyst

£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...

Senior Helpdesk Analyst / Service Desk Co-ordinator

£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...

Senior Pensions Administrator

£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...

Corporate Actions Administrator / Operations Administrator

£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...

Day In a Page

Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
Ed Sheeran hits back after being labelled too boring to headline festivals

'You need me, I don’t need you'

Ed Sheeran hits back after being labelled too boring to headline festivals
How to Get Away with Murder: Shonda Rhimes reinvents the legal drama

How to Get Away with Murder

Shonda Rhimes reinvents the legal drama
A cup of tea is every worker's right

Hard to swallow

Three hospitals in Leicester have banned their staff from drinking tea and coffee in public areas. Christopher Hirst explains why he thinks that a cuppa is every worker's right
Which animals are nearly extinct?

Which animals are nearly extinct?

Conservationists in Kenya are in mourning after the death of a white northern rhino, which has left the species with a single male. These are the other species on the brink
12 best children's shoes

Perfect for leaf-kicking: 12 best children's shoes

Find footwear perfect to keep kids' feet protected this autumn
Anderlecht vs Arsenal: Gunners' ray of light Aaron Ramsey shines again

Arsenal’s ray of light ready to shine again

Aaron Ramsey’s injury record has prompted a club investigation. For now, the midfielder is just happy to be fit to face Anderlecht in the Champions League
Comment: David Moyes' show of sensitivity thrown back in his face by former Manchester United manager Sir Alex Ferguson

Moyes’ show of sensitivity thrown back in his face... by Ferguson

Manchester United legend tramples on successor who resisted criticising his inheritance
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Ranked seventh in world’s best tourist cities - not London, or Edinburgh, but Salisbury

Lonely Planet’s Best in Travel 2015

UK city beats Vienna, Paris and New York to be ranked seventh in world’s best tourist destinations - but it's not London