* 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 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
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