Market Insight | Samsonite drops nearly 4% as privatization process may be hindered by overvaluation, UBS expects its first-quarter sales growth to slow down
Newell Brands fell nearly 4%, as of the time of publication, it dropped by 3.96% to HKD 26.7, with a turnover of HKD 215 million. On the news front, the latest news indicates that private equity firms' interest in acquiring Newell Brands is waning after evaluating the acquisition price as too high. Reports cited sources familiar with the matter as saying that the preliminary intentions of private equity funds do not align with Newell Brands' valuation expectations. Although potential buyers may restart work on privatization transactions, such plans are currently on hold. Newell Brands announced last month that the board had authorized management to seek a secondary listing of the company's shares on a major stock exchange outside the Hong Kong Stock Exchange. UBS released a report stating that Newell Brands will announce its first-quarter performance on May 14, with organic sales expected to increase by 5% year-on-year when calculated at a fixed exchange rate, in line with the company's guidance but with a slower growth rate. Net sales for the period are expected to increase by about 4%. Adjusted EBITDA forecasted at USD 166 million, with a 6% annual increase but an 8% quarterly decrease. The bank slightly lowered its target price from HKD 35 to HKD 34.5 to reflect lower profit expectations
According to the latest information from the Wise Finance APP, Samsonite (01910) fell by nearly 4%, as of the time of publication, it dropped by 3.96% to HKD 26.7, with a turnover of HKD 215 million.
On the news front, it is reported that after evaluating the high acquisition price, private equity firms are losing interest in acquiring Samsonite. Sources cited in the report mentioned that the preliminary intentions of private equity funds do not align with Samsonite's valuation expectations. Although potential buyers may restart work on privatization transactions, such plans are currently temporarily shelved. Last month, Samsonite announced that the board had authorized management to seek a secondary listing of the company's shares on a major stock exchange outside the Hong Kong Stock Exchange.
UBS released a report stating that Samsonite will announce its performance for the last quarter on May 14th, with organic sales expected to increase by 5% year-on-year when calculated at fixed exchange rates, a slowdown that is in line with the company's guidance. Net sales for the period are expected to grow by around 4%. Adjusted EBITDA forecast is $166 million, a 6% annual increase but an 8% quarterly decrease. The bank slightly lowered its target price from HKD 35 to HKD 34.5 to reflect lower profit expectations
