UPDATE 1-PPR board backs Fnac unit listing

Wed Apr 17, 2013 1:18pm EDT

* Shareholders to have 1 Fnac share for 8 PPR shares held

* PPR shareholders to receive cash dividend of 2.25 eur/shr

* Fnac listing on Euronext Paris to start on June 20

* Shareholders to vote on moves at June 18 meetings (Adds detail, background)

PARIS, April 17 (Reuters) - French retail and luxury group PPR's board has unanimously backed the planned stockmarket listing of its Fnac unit through a distribution of shares to existing shareholders, the company said on Wednesday.

Shareholders in PPR, due to change its name to Kering on June 18, will receive a cash dividend of 2.25 euros ($2.93) a share and one Fnac share for every eight Kering shares held, the company said in a statement.

Kering will distribute a maximum of 15.76 million Fnac shares to shareholders, slightly less than 95 percent of Fnac's share capital. The shares will be listed on the Euronext Paris exchange from June 20, PPR said.

Gucci and Puma owner PPR decided to spin off Fnac, the music and books retailer, after failing for years to find a buyer for the business as it refocuses on growing its luxury and sports brands.

PPR began its exit from retail with the sale of department store Printemps in 2006 and has since sold furniture retailer Conforama and its remaining stake in distribution unit CFAO. It is also selling its Redcats division.

Shareholders will be asked to approve the name change, and dividend and spin-off plans at meetings on June 18.

If the spin-off goes through it will mark a return to the market for Fnac, which was created in 1954 and obtained a Paris listing in 1980. PPR started investing in Fnac in 1994 and gained control in 1996. ($1 = 0.7668 euros) (Reporting by James Regan; Editing by Lionel Laurent and Greg Mahlich)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article