Puig distributed dividends of 186 million three days before CNMV’s IPO announcement | Companies

The Puig family paid dividends of 186 million euros on April 5, three days before the company submitted a document to the National Securities Market Commission (CNMV) in which it confirmed its firm intention to go public. – called ITF (intention to swimintends to quote in Spanish).

The prospectus presented…

The Puig family paid dividends of 186 million euros on April 5, three days before the company submitted a document to the National Securities Market Commission (CNMV) in which it confirmed its firm intention to go public. – called ITF (intention to swimintends to quote in Spanish).

The prospectus presented to executives yesterday detailed that the Puig Brands shareholders’ general meeting approved the distribution of share premium dividends in the amount of $186.1 million, which were paid on Friday, April 5, in cash. . On Monday, the 8th, the company presented the ITF.

A payment made using existing lines of credit. As explained in the prospectus, of the €1,250 million that the company plans to raise from investors for the new Class B shares it will bring to market, part of it will be used to “refinance amounts received from our credit facilities to finance the payment of dividends distributed on account of the share issue.” income on April 5, 2024.”

Another 160 million in 2023

This was not the only reward that Puig’s current shareholders have received recently. The company also distributed 160 million during 2023: 80 of these are allocated to the results of the 2022 financial year, and a further 80 as interim dividends for the 2023 financial year. Thus, the Puig family received 340 million euros. before granting access to new shareholders.

They, for their part, will have to wait to receive their first payment. The IPO prospectus clarifies that the group’s “intent” going forward is to “reasonably distribute cash dividends in the near future.” The first will come in 2025 and will be allocated to the results that Puig will receive in 2024, so it is assumed that during this calendar year the group will not distribute the additional remuneration allocated to the 2023 profit, which amounted to 465 million.

The Puigs have been active in distributing dividends in recent years. In 2022, the group’s then parent company Puig SL distributed €110 million. Of this amount, the vast majority – 86.18 million – was paid from the group’s reserves, while the remaining amount – 23.82 million – corresponded to the individual profits Puig made in 2021.

Behind Puig Brands’ ownership are up to 22 companies linked to members of the third generation of the family who are directly or indirectly involved as its shareholders. They are descendants of the founder’s four children: Mariano, Antonio, Enrique and José Maria Puig Planas, the latter of whom died in early February at the age of 92. The main shareholder of Puig Brands, the company that will go public, is Puig SL, the previous head of the group. Behind it are various companies, shareholder control of which is exercised by the third generation of the family.

Some of the third generation of Puig also occupy management positions in the company, which has also generated significant revenue over the past year. The most significant case is that of its executive president, Marc Puig, who received a salary of $25.7 million in 2023 and will receive a bonus of $9.3 million for going public. He is also a shareholder of the company Dendera 2002 SL. The other is Vice President Manuel Puig Rocha, the most important individual shareholder of the group, through the company Lyskamm 1861, as he is the only son of Antonio Puig Planas. He received 20.2 million euros after he ceased to be responsible for sustainable development.

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