Samsonite: Take Profit on Company's Surge Amid Buyout Buzz

We think shareholders can consider realizing some gains on their Samsonite holdings as information is circulating around a buyout involving private equity firms, as reported by Bloomberg on Tuesday. Shares surged as much as 16% on Tuesday, higher than our fair value estimate of HKD 27. Even though the shares look fairly valued to us now, there’s a possibility that potential bids could come at an even higher price to entice shareholder acceptance after considering the typical premium that private equity firms offer in such buyouts. Therefore, we think shareholders should take partial profits while monitoring further developments.