Adidas AG, the world’s second-biggest sporting-goods maker, jumped in Frankfurt on a report that a group of investors plans to bid about 1.7 billion euros ($2.2 billion) for the company’s Reebok unit.
The shares gained as much as 7.2 percent to 58.57 euros, the steepest intraday advance since May 3, 2013.
Jynwel Capital, a Hong Kong-based private-equity investor, and funds affiliated with the government of Abu Dhabi plan to make an offer to Adidas’s directors “imminently,” the Wall Street Journal said, citing people familiar with the matter. Adidas spokeswoman Katja Schreiber declined to comment.
Reebok has weighed on Adidas since being acquired by the Herzogenaurach, Germany-based company for $3.8 billion in 2006. After helping make step aerobics a staple in gyms two decades ago, the brand has fallen on hard times, with its share of the sportswear market sliding. Reebok is seeking to reposition itself as a leader in fitness gear after being replaced as the National Football League’s apparel supplier in 2012.
It’s unclear which Abu Dhabi fund would join Jynwel in its Reebok bid, the Journal said. The group plans to maintain Reebok’s strategy and provide more financing for marketing and new stores, while keeping Reebok’s executives, according to the report. The investors first approached Reebok’s management about making an investment late last year, the Journal said.
Adidas has had a difficult year, with its shares tumbling 37 percent amid tough competition from Nike Inc. and Under Armour Inc., and a declining market for golf gear. In July, the company scrapped its profit forecast for the year and abandoned long-standing sales and profit targets for 2015.
The German company last month took steps to placate investors with plans to buy back as much as 1.5 billion euros of its stock over three years.
