Dec 07

Reuters Press Release Regarding Pandora Jewellery

* Plans to sell new shares worth around 600 mln DKK

* Total enterprise value seen at 23-27 bln DKK – analyst

* Private equity, family owners to sell some of their shares

(Adds CEO, analyst comments, details)

COPENHAGEN, Sept 7 (Reuters) – Danish jewellery brand Pandora said on Tuesday it was planning to raise around 600 million Danish crowns ($103.7 million) in a stock market listing that will also give a partial exit to its private equity and family owners.

Pandora Holding A/S, which makes jewellery in Thailand and had 2009 sales of 3.46 billion crowns, was tipped as a likely candidate for an initial public offering by banking sources last month. [ID:nLDE67Q0SF] [ID:nLDE67U1AW]

Pandora plans to issue around 600 million Danish crowns in new shares, with the money to be used primarily to purchase the minority interests in distribution subsidiaries, it said.

“This way I am sure I as CEO can pursue our strategy and hopefully one day attain our vision of becoming the most famous jewellery brand in the world”, Chief Executive Mikkel Vendelin Olesen told Reuters on Tuesday.

Pandora sells jewellery in 47 countries around the world and its most important markets are the U.S., Australia, Great Britain and Germany.

Analyst Soren Hansen from Denmark’s Sydbank said Pandora’s total enterprise value on a debt-free basis could be between 23 and 27 billion crowns if the company will be traded at around 9 to 11 times expected 2010 earnings before interest, tax, depreciation and amortisation (EBITDA) as British and American peers such as Zale (ZLC.N), Blue Nile (NILE.O), Signet Jewelers (SIG.L) and Saks (SKS.N).

He said the company’s strong growth and margins indicate a price in the high end of the range but that the company is quite vulnerable to fashion trends as more than 80 percent of its revenue stems from its trademark charm bracelets.

Pandora’s IPO plans follow a flotation in Copenhagen by food ingredients maker Chr. Hansen in June (CHRH.CO), the bourse’s first major listing in years. Cleaning services firm ISS is also mulling an IPO.[ID:nLDE67O0DK]

Pandora, which said it was the world’s third-largest retail jewellery brand in terms of revenues in 2009, said an IPO would provide a strong platform for growth in existing and new geographical markets.

The IPO would also allow existing shareholders to reduce their stakes. Vendelin Olsen declined to comment on the size and timeline of this sell-down. Private equity investment firm Axcel holds 59.3 percent of Pandora’s shares through funds it controls, while the rest is owned by the founding family.

Pandora’s EBITDA was 1.02 billion crowns in the first half of the year, up 56 percent.

Goldman Sachs, JP Morgan, Morgan Stanley and Nordea will be joint global coordinators and bookrunners for the proposed IPO, while Carnegie and SEB are co-lead managers. Rothschild and FIH Partners are financial advisors to Pandora and Prometheus Invest, a vehicle controlled by Axcel. (Reporting by Teis Jensen and Anna Ringstrom; Editing by Erica Billingham, Mike Nesbit) ($1=5.784 Danish Crowns)

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