The Hong Kong-listed company will buy 43 million shares for 35 euros apiece from the French billionaire Pinault family's Artemis group, the statement to the Hong Kong exchange said, giving it a 29 percent stake.

The price is a more than 60 percent premium to Puma's last close, according to Bloomberg data, and values the deal at 1.51 billion euros.

Anta shares were up 1.3 percent at midsession on Tuesday after jumping 3.4 percent earlier in trading.

The stake sale comes as the German firm seeks to revive its fortunes after it lost ground to Nike and Adidas. It also faces competition from fast-growing brands like New Balance and Hoka.

Anta said in the statement that the stake would "further enhance its presence and brand recognition in the global sporting goods market", including China.

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"We believe Puma's share price over the past few months does not fully reflect the long-term potential of the brand," Anta chairman Ding Shizhong said.

"We have confidence in its management team and strategic transformation."

The deal is expected to help Puma increase its sales in the lucrative mainland Chinese market as Anta expands its multi-brand strategy. The purchase will also help Anta in its quest to become a more globalized business.

Anta said it would seek Puma board seats once the deal was finalized.

While the statement said Anta had no plans to launch a full takeover of Puma, it will "carefully assess the possibility of further deepening the partnership between the two parties in the future".

The firm, based in China's southeastern Fujian province, is one of the world's largest sportswear companies.

Founded in 1991, it is the parent company of many global brands through its subsidiary Amer Sports, including Wilson, Arc'teryx and Salomon.

Anta closed its acquisition of Finland-based Amer in 2019, leading a consortium in a deal worth about $5.2 billion.

It also controls rights in the vast Chinese market for foreign sportswear firms including Fila and Descente.

Puma, however, has been struggling with weak demand in recent months and saw sales decrease more than 15 percent in the third quarter of last year.

CEO Arthur Hoeld, who took over the company last year, has said the brand had become "too commercial" and was undergoing a "reset" last year to improve on brand heat, distribution quality and product offering.

In October, Puma said it would provide less discounts, improve marketing and cut its product range, in addition to cutting 900 jobs as part of a turnaround strategy.

"Anta's strong post-acquisition execution and operational empowerment have also given us confidence in its revitalization of Puma business in the future," Citigroup analysts said in a research note on Tuesday.

Reuters reported in early January that Anta had offered to buy about 29 percent of Puma from the Pinault family and had secured financing for the acquisition, although talks had at the time stalled over valuation.

The deal is subject to antitrust clearances, shareholder approval at Anta, and regulatory approvals in China and other jurisdictions.

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