Pandora Gains as Stock Sale by Biggest Owners Relieves PressureKatarina Gustafsson
Pandora A/S, the Danish maker of charm bracelets, rose in Copenhagen after the company’s main shareholders sold about 40 percent of their combined holdings, removing a cause of downward pressure on the stock.
The shares gained as much as 2.8 percent to 261.7 Danish kroner and traded up 1.7 percent at 12:56 p.m.
Private-equity fund Axcel and members of the jeweler’s founding Enevoldsen family agreed to sell 20 million shares in an offering to institutional investors, Pandora said in a statement today. The investors, whose holdings in the company were pooled under Prometheus Invest ApS until September, owned about 49.8 million shares prior to the stock placement.
The shares are being sold at a price of 245 kroner apiece, according to people familiar with the offering.
“Many investors have been standing on the sidelines just waiting for the placement, now the placement is over so they buy into the shares,” Jesper Christensen, an analyst at Alm. Brands Markets, said by phone.
Axcel and the family have a window of four weeks after each quarterly results statement in which they are able to sell shares. Pandora reported three-month earnings this week. The investors last sold in May when they dumped 13 million shares.
The latest sale is equivalent to about 15 percent of Pandora’s share capital, which would cut the collective stake of Axcel and the family to about 23 percent. Axcel bought a controlling 59.3 percent stake in Pandora in 2008 and began reducing its holding in a 2010 initial public offering.
Pandora, which suffered a collapse in demand two years ago, has seen its stock more than double this year, helped by strong sales of new products. The jeweler this week said net income for the three months ended Sept. 30 climbed to 612 million kroner ($110 million), a 61 percent increase compared with the same period a year earlier.