On September 21, 2006, PPR announced its decision to proceed with the early redemption/conversion of all outstanding PPR OCEANE bonds issued on May 21, 2003 and due on January 1, 2008.

 

 

Following early conversions by bondholders prior to the end of September 2006 and the redemption/conversion offer launched by PPR on September 29, 99.91% of OCEANE holders opted to exchange/convert their bonds for PPR shares. 12,489,017 bonds were tendered for conversion into PPR shares. The redemption/conversion will take place on October 30, 2006.

 

This extremely high conversion rate demonstrates bondholders’ confidence regarding PPR’s buoyancy and growth outlook.

 

In order to maximise the creation of value for its shareholders, PPR decided to reduce the number of new shares to be created by using 4,155,911 existing shares. Moreover, 8,333,106 new shares will be created and 10 982 unconverted bonds will be redeemed in cash at a price of € 91.62635 (accrued interest from January 1, 2006 inclusive).

 

 

This early redemption transaction initiated by PPR will enable the Group to strengthen its shareholders’ equity and to reduce its net financial debt by € 700 million.

Following this redemption/conversion, PPR’s share capital will increase to 128,387,274 shares.

 

 

 

PPR is a global player in Retail and Luxury Goods, with approximately 84,000 employees in 74 countries. Through its Retail businesses Redcats, Fnac, Conforama, Printemps and CFAO, and the Luxury brands of Gucci Group (Gucci, Bottega Veneta, Yves Saint Laurent, YSL Beauté, Balenciaga, Boucheron, Sergio Rossi, BEDAT & CO, Alexander McQueen and Stella McCartney), PPR generated sales of EUR 17.8 billion in 2005. PPR shares are listed on Euronext Paris (# 121485, PRTP.PA, PPFP). For more information: www.ppr.com

 

 

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Alexandre de Brettes                       

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