Michael Kors Holdings Ltd Sinks On Investors' Sale Of 5.7% Stake
Michael Kors Holdings Ltd (NYSE: KORS) said the Hong Kong private equity investor Sportswear Holdings Ltd. will sell its remaining 5.7 percent stake in the company in an offering launched Thursday.
In after-hours trading, Michael Kors sank seven percent on the news.
Silas Chou and Lawrence Stroll, who control Sportswear holdings, will resign from the company's board, following the sale of their remaining stake, leaving it with seven directors, including five who are independent.
The pair will sell 11.6 million of the company's 79.5 million shares outstanding. Kors won't receive proceeds from the sale.
Kors' shares have seen tough sledding recently with shares down more than 14 percent in the past three months on worries about its profit margin.
Kors Chief Executive John D. Idol said "we believe we have a bright future ahead with continued opportunity for growth."
Sportswear Holdings Ltd, purchased an 85 percent controlling stake in Michael Kors LLC back in 2003.
Sportswear is 50 percent owned by Westleigh Ltd., which is held by Chou and 50 percent owned by Flair Investment Holdings Ltd., in which Lawrence S. Stroll has an ownership interest.
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