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It looks like Suunto is up for sale.
More specifically ANTA Sportswear Products & FountainVest, both of China, have expressed an interest to buy at least part of the parent company AMER SPORTS.
Source: NADAQ Helsinki.
An offer of Eur40/share seems to be on the table. That is a notable premium above the current share price. Shares are priced at a discount on an open market, the discount is because of a shareholder’s lack of control. If you want to buy CONTROL then you add the premium back on and other factors too, of course.
The share price rose in September when initial discussions started, which seem to be based on interest initially in Amer’s ENVE and MAVIC brands. I would imagine it unlikely that parts of the business will be sold piecemeal. Those that are left behind in such a scenario would have proportionately higher overheads to cover, which would not be great.
90% of voting shares would need to be cast to agree to the offer – which is a big hurdle to overcome. Then again, getting twice what your shares were valued at in January 2018 is probably a straightforward call.
Whilst this looks like a good deal for shareholders worried about stagnation and even decline in some parts of the cycling industry, it might not be a great thing for a quality brand like Suunto and it might not be great news for many of Amer’s existing Eu-based employees. Let’s hope things turn out well.
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