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Samsonite shares rally as report flags takeover talks

Published 02/27/2024, 12:14 PM
Updated 02/27/2024, 12:14 PM
© Reuters.

Investing.com-- Shares of Samsonite International SA (OTC:SMSEY) (HK:1910) rose sharply on Tuesday after a Bloomberg report said the Hong Kong-listed luggage maker is considering its options after receiving takeover interest from several suitors. 

Samsonite is considering several options, including potentially going private, Bloomberg reported, with the luggage maker having already held discussions with several suitors, including buyout firms, for a potential takeover. 

Samsonite’s shares jumped 16% to HK$27.0- reaching a near five-month high, as the prospect of privatization or even a takeover offered some relief to shareholders. 

The Luxembourg-based firm had listed in Hong Kong in 2011 to get closer to its biggest buyers. 

While the firm has remained largely profitable and seen steady sales growth, the Bloomberg report comes as several major multinational firms consider potential exits from Hong Kong, amid growing U.S.-China geopolitical rifts and a looming slowdown in the Chinese economy. 

Potential U.S. sanctions against Beijing have been a key point of anxiety for multinational firms with Hong Kong listings and operations. The U.S. had recently slapped chip export restrictions on China, which impacted firms such as Micron Technology Inc (NASDAQ:MU) and NVIDIA Corporation (NASDAQ:NVDA), which have key markets and operations in China.

Still, Samsonite CEO Kyle Gendreau had said last year that the firm had no plans to consider an offshore listing. 

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