Sparkle Roll says it is in talks on potential Bang & Olufsen takeover

Date: 24 Mar 2016

Chinese luxury goods investor Sparkle Roll said it was in talks about a potential takeover offer for the Danish consumer electronics company - Bang & Olufsen - on Tuesday.

Bang & Olufsen, which has failed to make a profit in each of the past three years, said in November that it had received approaches over a potential takeover.

"We strongly believe that Bang & Olufsen would benefit from a different ownership structure than the present in order for the company to free up resources as well as accelerate growth and consolidation," Chairman of Sparkle Roll Qi Jianhong said in a statement published by Bang & Olufsen.

"As a result, we have explored the possibility of making a public offer for all shares," Qi Jianhong said.

Shares in Bang & Olufsen, known for its sleek designs and televisions costing up to 60,000 Danish crowns ($8,540), have fallen 15 percent in the year to date. They were up 1.5 percent by 0850 GMT.

Sydbank analyst Morten Imsgard said Sparkle Roll was not the most obvious buyer and also said the announcement could indicate possible difficulties in getting an agreement. He said it could be a sign that Sparkle Roll was putting pressure on Bang & Olufsen's board to make a decision.

"It's a buyer who would like to own the brand, but who can not offer much in terms of operations," Imsgard said.

On Friday, Bang & Olufsen said it had entered a strategic technology partnership with LG Electronics on the development and production of its televisions.

(Source: Reuters)

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