ARCHIVED FORUM -- March 2012 to February 2022READ ONLY FORUM
This is the second Archived Forum which was active between 1st March 2012 and 23rd February 2022
Article here: (in danish) http://finans.dk/live/erhverv/ECE8529075/potentiel-koeber-af-bo-har-meldt-sig-paa-banen/?articleId=8529075&ctxref=ext
Electronics manufacturer Bang & Olufsen (B & O) is in dialogue with the Hong Kong-based company Sparkle Roll Group on a sale.
It informs Sparkle Roll in a message that B & O has forwarded to the stock exchange.
The notice states that Sparkle Roll trading in luxury goods, is interested in buying all the shares in Struer-company if they can be acquired for a 'reasonable price'. I already owns Sparkle Roll 5.57 per cent. B & O shares.
That will at last put the name of the company, which for months has been in dialogue with B & O on a possible takeover. Rumours of a sale of the Danish electronics group has flourished since the end of November, the company announced that it is in dialogue with a potential bid.
Five days ago - since B & O announced a new partnership with television giant LG - was the message so that the buyer karen was narrowed to one company. The company proved Sparkle Roll.
Chairman of Sparkle Roll, Qi Jianhong, said the company has followed the B & O since 2012 and are very excited about the company, its products and brand.
"We believe that Bang & Olufsen will benefit from a new ownership structure in order to release resources and accelerate the company's growth and consolidation. As a result, we have investigated the possibility of making a bid for all shares in Bang & Olufsen, "said Qi Jianhong in the message.
B & O has solved the major problem - but it is only a plan B?
He stresses, however, that several aspects of a purchase is yet to be cleared.
"In any case, an offer for all shares in Bang & Olufsen condition that the price is reasonable and that it reflects the company's potential and the significant uncertainty and the investments needed to ensure further development and growth," says chairman .
B & O already cooperates with Sparkle Roll, which operates several B & O stores in China.
The beginning of the end.
Struer to follow the path of Saab's Trollhattan?
Graham
Sparkle Roll.
Top end luxury goods importer into China.
Just as the Chinese economy goes into recession.
What could go wrong?
Good point
Let's wait for an official statement from B&O.
MM
There is a tv - and there is a BV
JanB:The notice states that Sparkle Roll trading in luxury goods, is interested in buying all the shares in Struer-company if they can be acquired for a 'reasonable price'. I already owns Sparkle Roll 5.57 per cent. B & O shares.
Of course everything is for sale if the buyer AND the seller have a common understanding on what "reasonable price" means. At <6% ownership, they have no chance of buying the company if the owners don't want to sell. I'm open for offers
--mika
Interesting times. On the brink of a possible world trade recession. China imports will fall away/ become too expensive. Home grown industries will reappear. So is the strategy for B&O to ride-out what's coming, knowing that the cheap competition may fall away? Or sell up whilst there is a buyer in the market?
Volvo Cars have a Chinese owner, and are still a brand with a swedish/scandinavian image, with the design done in Sweden.
Hopefully (and most likely) B&O will still be able to keep the danish brand image.
Livingroom: BL3, BL11, BV11-46 Kitchen: Beosound 1 GVA, Beocom 2 Bathroom: M3 Homeoffice: M3, Beocom 2 Library: Beosound Emerge, Beocom 6000 Bedroom: M5, Essence remote Travel: Beoplay E8 2.0, Beoplay EQ, Beoplay Earset
Another article - the chinese are turning on the heat on B&O - article here (in danish again) http://www.business.dk/detailhandel/analyse-kinesisk-presbold-paa-bo-bestyrelse
"It is highly remarkable that the Board of Directors of Bang & Olufsen (B & O) now after months of speculation naming the interested buyer who has rumbled in the wings since november last year when the board announced that there was an interest to buy the company.
This is striking because the name of the interested buyer who is Sparkle Roll Group based in Hong Kong, appears in a stock exchange release without an offter put forward which the Board would recommend or that Sparkle Roll for that matter has withdrawn.
After months of negotiations, Sparkle Roll has now lost patience and turned the heat up on the B & O board. Sparkle Roll wants the Board's recommendation of a tender offer from the luxury group based in Hong Kong.
But the stock market has speculated the B & O share to more than 70 kr. Per share equal to the market value of over 3.1 billion. kr.
Just this morning's rise in share price alone has increased the value by more than 100 million. kr.
Analysts: Chinese people hope for cheap trade with B & O
But B & O is not much more than 3 billion. kr. worth in value, according to Sparkle Roll, who wants to buy B & O. The Chinese want to buy B & O for a 'reasonable price' as expressed in the notification. But the price is close to the current price or just slightly above. Therefore, a share price of 70 kr. Per share is a problem, because there is no room for any further hefty premium to the shareholders of B & O. Traditionally, a buyer provides a 'premium' of about 30 per cent. or more to persuade the shareholders of a listed company to sell. In addition, the first commandment usually must be raised to give shareholders a feeling that they have negotiated a good price for the shares. It's clean realtor psychology.
Sparkle Roll has probably threatened the B & O board with withdrawing as an interested buyer. That would make the B & O share drop like a stone. Since the end of October last year when the stock slowly began to rise in the rumors that there could be a takeover bid, the share has increased more than 50 percent. The share will therefore most likely drop like a stone if Sparkle Roll withdraws their offer. The Board has for long recognized that B & O in its current ownership structure and a loss on operations is too small in the global competition. Therefore the need to find a new owner or partner is essential to B & O so they can survive.
Sparkle Roll has threatened to publish its interest through an official tender offer of the stock exchange, it is also called a hostile bid. But it is not interested in this course of action. For the Board of Directors would like to have as good an offer for the shareholders as possible. And a hostile attempt also threatens to end with the Chinese withdrawning the offer..
Sparkle Roll wants the Board's recommendation to convince the stock market that they are the only option for the company to survive."
Public relations firm Kreab initially said the Hong Kong-listed company was working on a possible bid. Later, the public relations firm clarified that should an offer materialize, it would emanate from a separate entity, wholly owned by Mr. Qi and called Sparkle Roll Group Ltd. BVI.
http://www.wsj.com/articles/chinas-sparkle-roll-in-talks-to-buy-bang-olufsen-1458643335