China’s Qumei makes $630m cash bid for Norway furniture maker Ekornes

Visual from Ekornes website

China’s Qumei Home Furnishing Group on Tuesday made an all-cash bid for Norway’s Ekornes, valuing the Oslo-listed furniture maker at 5.1 billion Norwegian crowns ($630.75 million), the companies said in a joint statement.

The board of Ekornes unanimously recommended the bid of 139 Norwegian crowns per share, a premium of 18 percent above Wednesday’s close.

“After the first approach from Qumei more than a year ago, the board and management have spent significant time and efforts to assess this strategic opportunity,” Ekornes said.

“We have been impressed by Qumei’s ability to develop successful products and marketing concepts and we see great potential for Ekornes to continue its success under this new ownership,” it added.

Shareholders owning 25.7 percent of Ekornes have given pre-acceptance, Ekornes said.

Best known for its “Stressless” furniture brand, Ekornes’ revenues fell by 2 percent to 3.08 billion Norwegian crowns in 2017, while its net profit, hit by a negative currency effects, fell by 38 percent to 200.5 million crowns.

By 0711 GMT, shares of Ekornes traded 16 percent higher for the day at 137 Norwegian crowns, just shy of the 139 crowns offer price.

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Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.