The families behind Puig (BIT:1PUIG) and Estée Lauder (EU:EL) are reportedly evaluating different mechanisms to rebalance their ownership stakes should the two beauty companies pursue a merger, according to a report by Expansion.
The objective would be to strengthen Puig’s influence within the governance structure of a combined group, the newspaper reported Thursday, citing unnamed sources.
One proposal being discussed would see Estée Lauder issue new Class B shares, which carry 10 voting rights compared with one for Class A shares, and swap them for Class A shares currently held by the Puig family. At present, Puig’s Class A shares grant five voting rights each, while its Class B shares carry a single vote.
Such a structure could help narrow the gap between the ownership held by the Estée Lauder family and the potential stake of the Puig family in a merged company, the report said.
Another option under consideration would involve creating additional share classes or introducing an asymmetric dividend structure designed to bring the two families’ shareholdings into closer alignment.
According to Expansion, this strategy could benefit from Puig’s comparatively lower debt levels relative to Estée Lauder.
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