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CVC, RBS further sell down stake in luggage maker Samsonite

14 Jan 2013

hong-kong_lrgCVC Capital Partners and RBS are reported to have raised an additional $290m after further selling down their stake in Samsonite International, the Hong Kong-listed luggage company.

The two investors sold shares at HK$16.20 each, representing a 4.9 per cent discount to the company’s closing price on Friday, according to a term sheet seen by Reuters.

The move follows a sell-down in September last year which saw the pair raise HK$2.22bn ($284m today) after selling a combined 153.6 million shares in the business.

That sale saw CVC and RBS sell at HK$14.50 per share, equivalent to a 3.3 per cent discount to the closing price on September 14.

CVC and RBS also raised $216m on April 11 after selling a combined 112.8 million Samsonite shares at HK$14.90 each, equivalent to a 4.73 per cent discount to the April 10 closing price of HK$15.64.

CVC and RBS owned respective stakes of 28.66 per cent and 15.84 per cent before that sale, according to information registered with the Hong Kong Stock Exchange.

Samsonite raised $1.25bn though it’s listing in June last year.

The company initially set an indicative range of $13.50 – $17.50 per share, but reduced that to $14.50 – $15.50 in the face of market uncertainty.

Samsonite, which produces suitcases, briefcases and other bags, was hit by a fall in demand during the downturn, driven by a drop-off in travel.

CVC was forced to pay $175m in June 2009 to retain its 60 per cent stake in the company, which it acquired in July for $1.7bn.

RBS acquired a minority stake at the time of CVC’s debt for equity swap, allowing Samsonite to avoid a breach of loan covenants. The company has recovered strongly since then.

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