Sparkle Roll Explores Bang & Olufsen Stake Sale Arabian Post

2026-09-10 02:16:39

(MENAFN- The Arabian Post) clearfix">Hong Kong-based New Sparkle Roll International Group is considering selling its holding in Bang & Olufsen, potentially reshaping the ownership of the Danish luxury audio maker, people familiar with the matter said.

The deliberations concern a stake of more than 10 per cent in the Copenhagen-listed company, making New Sparkle Roll one of Bang & Olufsen's two largest disclosed shareholders. The process remains under consideration and no final decision has been made, according to people with knowledge of the discussions.

Bang & Olufsen's shareholder register lists New Sparkle Roll and Denmark's Dyvig Holdings as investors holding more than 10 per cent of the company's capital and voting rights. ATP and Chr. Augustinus Fabrikker are among investors above the 5 per cent threshold, while UBS has also crossed that reporting level at points during 2026.

<p>New Sparkle Roll's possible disposal comes after it increased its position above the 10 per cent disclosure threshold last year. Bang & Olufsen said in April 2025 that the Hong Kong group, through Sparkle Roll Limited, indirectly held 10.01 per cent of the company's shares and voting rights as of April 23.</p><p>The investor had previously described the Bang & Olufsen holding as a long-term investment intended to generate capital appreciation and distributions. Its annual report for the year ended March 2025 showed ownership of 13.45 million Bang & Olufsen shares, equal at that date to about 9.13 per cent of issued stock, up from 12.48 million shares a year earlier. Subsequent purchases took the holding above 10 per cent.</p>See also  US, Cameroon outline $7 billion commercial investment pipeline <p>Any sale would draw attention to potential buyers for a sizeable block in one of Denmark's best-known consumer brands. A transaction involving more than a tenth of the company could alter the balance among its major shareholders, although there is no indication that a buyer has been selected or that negotiations have reached an advanced stage.</p><p>The deliberations also coincide with Bang & Olufsen's efforts to strengthen profitability after a mixed financial year. The company reported revenue of 2.47 billion Danish kroner for the year ended May 31, 2026, down 3.3 per cent from the previous year and 1.6 per cent lower in local currencies.</p><p>Its gross margin, however, rose 3.2 percentage points to a record 58.2 per cent, while earnings before interest and tax excluding special items slipped to a loss of 13 million kroner from a 26 million kroner profit. Profit before tax was a loss of 63 million kroner, compared with a 2 million kroner profit a year earlier, and free cash flow was negative 141 million kroner.</p><p>Performance improved in the fourth quarter, when like-for-like sell-out grew 11 per cent and the company generated EBIT before special items of 37 million kroner, compared with 7 million kroner a year earlier. Bang & Olufsen has forecast local-currency revenue growth of 1 per cent to 5 per cent for the 2026-27 financial year, an EBIT margin before special items of 1 per cent to 3 per cent and free cash flow of 25 million to 100 million kroner.</p><p>The company has been narrowing its retail network while concentrating investment on selected cities and higher-margin branded channels. At the end of May it operated 315 monobrand stores, a net reduction of 31 from a year earlier. Its designated“Win Cities” recorded 18 per cent sell-out growth over the full financial year.</p>See also  Lake America order puts digital maps in bind <p>Management has also changed as the company pursues that strategy. Gianfilippo Testa became chief executive on August 13, succeeding interim chief executive Nikolaj Wendelboe, who retained his chief financial officer role and also became chief operating officer. Bang & Olufsen said the appointments formed part of a coordinated leadership overhaul. At the same day's annual meeting, shareholders approved the 2025-26 accounts and resolved that no dividend would be paid, with the year's result carried forward.</p><div class='code-block code-block-1'><h2></h2></div>

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Sparkle Roll Explores Bang & Olufsen Stake Sale Arabian Post

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