Watches of Switzerland Urged to Move Listing from London to US by Gatemore
Activist investor Gatemore has advised Watches of Switzerland Group to shift its main stock market listing from London to the US. This recommendation follows a challenging period for the London Stock Exchange, with several companies opting for listings in international markets.
Gatemore Capital Management emphasised that the company could “fully unlock the value of its stock” by relocating its primary stock market listing to the US. Watches of Switzerland, headquartered in Leicester and operating 221 stores, is currently listed on the London Stock Exchange and is part of the FTSE 250 index.
Gatemore, based in London, suggested that Watches of Switzerland could gain access to “deeper pools of capital” and experience “significantly greater liquidity” by entering the US markets. The company has seen substantial growth in the US through various acquisitions, with US sales contributing about 40% of its revenues in the latest financial year.
In addition to pushing for a change in market listing, Gatemore also advocated for Watches of Switzerland to initiate a substantial share buyback to enhance shareholder value. Liad Meidar, managing partner at Gatemore, praised Watches of Switzerland for its leading position in the UK market and encouraged it to expand further in the US market.
A Watches of Switzerland spokesperson stated that they engage in open communication with all shareholders but refrain from commenting on individual shareholder perspectives. On Wednesday morning, shares in the retail business saw a 1% decline to 432.4p.
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Insights and Summary:
The suggestion from Gatemore for Watches of Switzerland to transition its primary listing from London to the US highlights the competitive dynamics of global stock markets. The potential benefits of accessing larger capital pools and increased liquidity in the US market demonstrate a strategic move for the company. Furthermore, the emphasis on unlocking additional growth in the US market showcases the importance of international expansion for businesses in the retail sector. Overall, this development underscores the evolving landscape of financial strategies and market preferences in the corporate world.