Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

According to Reuters, The Royal Bank of Scotland Group plc (RBS - Snapshot Report) and CVC Capital Partners – a private equity company – announced the divestiture of their joint stake of $528 million in luggage manufacturer and retailer Samsonite International S.A. .

Royal Bank of Scotland along with CVC Capital sold roughly 212.4 billion shares for HK$19.28 ($2.48) each. Approximately 65% of the shares were sold by CVC Capital and the remaining by Royal Bank of Scotland. The total transaction amounted to around HK$4.1 billion ($0.5 billion). The Goldman Sachs Group, Inc. (GS - Analyst Report) acted as the underwriter for the sale.

Earlier, in 2011, CVC Capital and Royal Bank of Scotland together raised roughly $821 million and helped Samsonite to get listed in the Hong Kong Stock Exchange with a $1.25 billion initial public offering (IPO).

In the current sluggish market, marred by new regulations and further compounded by the Euro zone crisis, many banks like Royal Bank of Scotland have resorted to downsizing non-core assets in order to reduce expenditures.

We believe the stake sale by Royal Bank of Scotland is a part of it restructuring process. Notably, concurrent with the third quarter 2012 earnings release, management indicated that the company will continue with the strong progress on restructuring. Management aims to complete most of the restructuring actions from its 2009 strategic plan in 2013 and 2014.

Going forward, we expect diversified business model and sound financial position to keep contributing to its overall growth in the future. However, we are concerned about the increasing competition, volatility in the global economy and the effects of the deepening Euro zone crisis along with the recent economic turmoil in Cyprus.

Among other foreign banks, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA - Snapshot Report) retains a Zack Rank #1 (Strong Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%