According to Reuters,
The Royal Bank of Scotland Group plc
) and CVC Capital Partners - a private equity company - announced
the divestiture of their joint stake of $528 million in luggage
manufacturer and retailer
Samsonite International S.A.
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Royal Bank of Scotland along with CVC Capital sold roughly 212.4
billion shares for HK$19.28 ($2.48) each. Approximately 65% of
the shares were sold by CVC Capital and the remaining by Royal
Bank of Scotland. The total transaction amounted to around HK$4.1
billion ($0.5 billion).
The Goldman Sachs Group, Inc.
) acted as the underwriter for the sale.
Earlier, in 2011, CVC Capital and Royal Bank of Scotland together
raised roughly $821 million and helped Samsonite to get listed in
the Hong Kong Stock Exchange with a $1.25 billion initial public
In the current sluggish market, marred by new regulations and
further compounded by the Euro zone crisis, many banks like Royal
Bank of Scotland have resorted to downsizing non-core assets in
order to reduce expenditures.
We believe the stake sale by Royal Bank of Scotland is a part of
it restructuring process. Notably, concurrent with the third
quarter 2012 earnings release, management indicated that the
company will continue with the strong progress on restructuring.
Management aims to complete most of the restructuring actions
from its 2009 strategic plan in 2013 and 2014.
Going forward, we expect diversified business model and sound
financial position to keep contributing to its overall growth in
the future. However, we are concerned about the increasing
competition, volatility in the global economy and the effects of
the deepening Euro zone crisis along with the recent economic
turmoil in Cyprus.
Among other foreign banks,
Banco Bilbao Vizcaya Argentaria, S.A.
) retains a Zack Rank #1 (Strong Buy).