Watches of Switzerland held talks over potential takeover offers: sources
Its shares jumped as much as 8.2%
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[LONDON] London-listed Watches of Switzerland Group has held talks in recent months over potential offers to take the luxury watch retailer private, said three people close to the matter.
Shares in the FTSE 250 company, sales of which are split more or less evenly between the United Kingdom and the United States, have rallied by 55 per cent to about £7.20 this year on strong demand for high-end timepieces from the likes of Rolex and Cartier.
Yet the shares remain at less than half their 2022 peak, LSEG data shows, reflecting a European luxury sales slowdown in recent years. Its shares sank in 2023 after major supplier Rolex acquired Swiss-based retailer Bucherer, which some analysts saw as a threat to the watchmaker’s relationship with Watches of Switzerland.
Watches of Switzerland CEO Brian Duffy responded to the initial approaches because he believes the stock market undervalues the company, two of the sources said, with one adding that no formal offer has been made. Private equity funds and strategic bidders have shown interest in the company, a second person said.
The third source said the company was seeking an offer of significantly more than £7.50 per share. Watches of Switzerland said it does not comment on rumours or speculation. Rolex declined to comment.
Watches of Switzerland shares jumped as much as 8.2 per cent at 778.5 pence, highest since May 2023 after the Reuters report. An upbeat outlook from the company in May was supported by US stock market strength that boosted consumer sentiment, though higher gold prices have squeezed margins.
The UK’s largest luxury watch retailer, established in 2007, is due to publish full-year results on Tuesday. A private sale of the business would continue this year’s migration of UK companies from the London Stock Exchange after a flurry of foreign takeovers. REUTERS
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