Bang & Olufsen: New Major Shareholder from China
With a new largest shareholder and fresh infusion of funds, the company can now focus on the future.
Chinese billionaire Qi Jianhong, is now the biggest shareholder in Danish company Bang & Olufsen. His stock in the brand that produces luxury stereo systems and TVs is now held through two companies that he owns. Sparkle Roll Group Ltd. BVI and Sparkle Roll Holdings Ltd.BVI now own a total stake of 18.7% in the company.
Negotiations of the purchase by China’s 422nd richest man who has a net worth of 8 billion Yuan, came after a drawn out sales process by other shareholders. With bleak results that resulted in no strategic buyers and one suitor — who eventually bought the stakes, the successful sale was unconfirmed up until Wednesday. His purchase of 5.67 million shares at a price that is 14% higher than the closing price, now allows management to shift its focus on turning the fate of the company around and in turn increasing sales.
While revenue at the upmarket consumer electronics firm is far from shabby, the company reported a net loss for December to February. The net loss is attributed to the high-cost of the electronics where a television can set you back nearly $8,000 at a time when prices of flat screen sets continue to take a dive. The healthy sales is thought to be due to the strong performance of B&O PLAY — a line of standalone, portable products targeting a generation that listens to music on smartphones instead of home hi-fi systems.
This article was written in-house based on an article in Bloomberg Technology.