Several investors in Pandora A/S (PNDORA) raised about 5.2 billion kroner ($950 million) by selling a stake of about 10 percent in the Danish maker of charm bracelets, capitalizing on its surging share price.
Funds managed by Danish private-equity firm Axcel, Pewic Holding ApS and Christian and Per Algot Enevoldsen sold 13 million shares to institutional investors, joint bookrunners Danske Bank A/S and Goldman Sachs Group Inc. said in a statement. The 397 kroner per share price reflects a 3.9 percent discount to yesterday’s closing price.
The sale mirrors one by the same shareholders on March 14, and follows a 15 percent gain in the stock price from that date through yesterday. Pandora shares more than doubled in the past year as shoppers snapped up the jeweler’s collections of charms. The Glostrup, Denmark-based company raised its annual sales forecast this month after reporting first-quarter revenue that exceeded estimates.
Pandora fell 3.6 percent to 398.40 kroner at 10:28 a.m. in Copenhagen, after closing yesterday at the highest since its 2010 initial public offering. The shares fell as low as 34.30 kroner a year after the IPO when the jewelry maker suffered a collapse in demand. It has since turned a page after adding new products more frequently.
The investors probably will sell the rest of their holdings in three months, a positive for the shares because it eliminates uncertainty, Jesper Christensen, an analyst at Alm Brand Markets, said by telephone. The investors sold “at a bit of a discount,” causing the shares to drop today, he said.
Axcel bought a controlling stake in Pandora in 2008 and later reduced its holding. It will own about 3.7 percent of the company following the transaction and a separate purchase of shares from Michael Lund Petersen, a minority founding shareholder. Pewic and the founding Enevoldsen family retain 2.3 million shares in the company.
All of the selling shareholders have agreed not to sell any more Pandora shares within 90 days of the transaction, according to a separate statement released late yesterday. A Pandora spokesman declined to comment on the sale.
Last week, Pandora raised its forecast for store openings, saying it expects to add more than 225 Pandora-branded outlets this year, compared with previous expectations of 175. The company had 1,137 such stores at the end of the first quarter.
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