French luxury goods group Kering announced on Wednesday that it is selling 5.9 percent of its stake in Puma, valued at $1 billion. The move comes as the conglomerate continues to unwind its investment in sportswear to focus on higher-end luxury brands, The Business Times reports.

In a statement, Kering said that it had launched "the sell-down of approximately 8.9 million shares, representing approximately 5.9 per cent of the share capital of Puma, through a placement to qualified investors only by way of an accelerated book-building process."

Following the sale, Kering will be left with four percent of Puma's outstanding shares. The luxury conglomerate originally acquired the German brand in 2007 and held some 86.3 percent when it announced in 2018 that it would gradually wind down its investment as part of a wider shift to luxury.

Based on the closing price of Puma shares on the Frankfurt stock exchange on Wednesday, the transaction would be worth more than Є830 million (or $1 billion). Kering said the proceeds of the transaction will be used for general corporate purposes and will further strengthen its financial structure.