Key facts
- Watches of Switzerland Group has held talks about potential offers to be taken private.
- CEO Brian Duffy is engaging in these discussions, believing the company is undervalued by the stock market.
- No formal offer has been made.
- The company is reportedly seeking an offer of more than £7.50 per share.
London-listed Watches of Switzerland Group has recently engaged in discussions concerning potential offers to take the luxury watch retailer private, according to three sources familiar with the matter. The company's shares have seen a significant increase of 55% this year, reaching approximately £7.20, driven by strong demand for high-end watches from brands like Rolex and Cartier. However, these shares are still less than half of their peak in 2022, reflecting a broader slowdown in European luxury sales in recent years.
CEO Brian Duffy has been receptive to initial approaches, as he believes the company is undervalued by the stock market, two sources indicated. One of these sources added that no formal offer has yet been presented. A third source stated that the company is looking for an offer substantially exceeding £7.50 per share.
Watches of Switzerland, established in 2007, is the largest luxury watch retailer in the UK. The company is scheduled to release its full-year results on Tuesday. A potential private sale would follow a trend of UK companies delisting from the London Stock Exchange this year, with a notable number of foreign takeovers occurring.