Bang & Olufsen would listen if approached by buyer -chairman

New Sparkle Roll International

23/08/2019 07:43

COPENHAGEN, Aug 23 (Reuters) - Luxury TV and speaker maker
Bang & Olufsen  BO.CO  would listen if approached by a buyer,
chairman Ole Andersen told newspaper Borsen, following three
earnings warnings this year.
    "If we would get an enquiry, we would listen, but it would
of course have to be discussed with the shareholders," Chairman
Ole Andersen said.
    "After having to revise down our earnings on three
occasions, the warning bells start to ring," Andersen said, when
asked if a sale of the company had become more relevant in
recent months.
    A Bang & Olufsen spokesman confirmed the quotes to Reuters,
but stressed that the company had not put itself up for sale.
    B&O's biggest shareholder is Chinese investor Qi Jianhong,
who owns just under 15 percent in the company through his
Sparkle Roll companies, Refinitiv data showed. 
    In April 2016, Bang & Olufsen rejected a takeover bid by
Sparkle Roll.
    Bang & Olufsen had initially forecast 10% sales growth for
the financial year that ended in May but slashed its outlook
three times in six months with sales eventually falling 14%.
    Financial trouble at the Danish firm, whose televisions can
sell for up to 96,000 Danish crowns ($14,252), comes as subdued
consumer spending has hit retailers across Europe and also
reflects slow progress on B&O's turnaround plan, including fewer
new products.
    The company is trying to revamp its distribution network
from a wholesale model to a more retail-driven focus in a bid to
boost sales.
    It has forecast sales growth this year on new products and
store openings in major cities.  urn:newsml:reuters.com:*:nL8N24C1KH
    Shares in B&O have slumped almost 80% since a peak in
January 2018.
    ($1 = 6.7358 Danish crowns)

 (Reporting by Jacob Gronholt-Pedersen; editing by Jason Neely)
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