Samsonite International witnessed a significant surge in its shares on Tuesday following a media report suggesting that buyout firms and other parties are interested in acquiring the renowned luggage maker.
Solid Gain:
The shares soared by 14% to 26.50 Hong Kong dollars (US$3.39) at the midday break in Hong Kong, marking the most substantial one-day percentage increase in nearly two years. This rise propelled the stock into positive territory for the year.
Consideration of Going Private:
According to Bloomberg, Samsonite is contemplating various options, including the possibility of going private after engaging in discussions with a consortium of potential buyers. The report, citing sources familiar with the matter, mentioned that some private equity companies are evaluating the acquisition of Samsonite, with intentions to relist the company in a different market at a higher valuation.
Recent Performance:
Samsonite, which went public on the Hong Kong Stock Exchange in 2011, experienced a peak in share prices in 2018 at HK$37.35. However, the onset of the Covid-19 pandemic in early 2020 resulted in a substantial decline of approximately 61% in the value of its shares during the first quarter.
Despite these challenges, shares have been steadily climbing since late 2020 as sales show signs of recovery. In the third quarter of 2023, Samsonite reported sales of nearly US$958 million, reflecting a notable 21% increase compared to the same period in the previous year.
Samsonite has yet to provide any comments in response to queries made by Dow Jones Newswires.