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Samsonite shares hit 6-month low as lock-up expires
HONG KONG, July 10 |
HONG KONG, July 10 (Reuters) - Shares of Samsonite International S.A., the world's biggest luggage maker, fell more than 7 percent to the lowest level in six months on Tuesday on worries its two largest shareholders will trim their stakes.
The shares fell to as low as HK$11.62, the weakest level since Jan. 10 at one point during the session and were trading 6.7 percent down at 0721 GMT. That compared to a 0.08 percent gain in the benchmark Hang Seng Index.
On April 10, Royal Bank of Scotland (RBS) and private equity fund CVC Capital Partners raised HK$1.68 billion ($216.64 million) from the sale of 112.8 million shares in Samsonite.
The sale was priced at HK$14.90 a share, with RBS and CVC subject to a 90-day lock-up period as is typical in block deals. Analysts expect the two shareholders to reduce their stakes further, flooding the market with additional stock and pressuring prices.
CVC held 23.33 percent of Samsonite while RBS held 12.51 percent after the April sale, according to the Hong Kong stock exchange.
($1 = 7.7549 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Matt Driskill)
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