Watches of Switzerland pressured to ditch London listing for US by Gatemore
Gatemore Capital Management said the company should ‘fully unlock the value of its stock’ by securing a primary listing in the US.
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Activist investor Gatemore has urged Watches of Switzerland Group to swap its main stock market listing from London to the US.
The call comes after a tough two years for the London Stock Exchange, with a number of firms dropping their listings in the city for international counterparts.
Gatemore Capital Management said the company should “fully unlock the value of its stock” by moving its primary stock market listing to the US.
With a clear leading position in the UK market, the company is now well positioned to unlock additional growth in the massive and underpenetrated US market
The Leicester-based company, which runs 221 stores, is currently listed on the London Stock Exchange and a member of the FTSE 250 index.
London-based investor Gatemore argued that Watches of Switzerland could benefit from great “access to deeper pools of capital” and “significantly greater liquidity” through the US markets.
The retail firm has grown substantially in the US in recent years, supported by acquisition deals.
US sales represented around 40% of the group’s revenues for the latest financial year.
Gatemore also called for Watches of Switzerland to launch a substantial share buyback to create more value for shareholders.
Last month, Gatemore said that it owned 1.9 million shares in the business, representing less than 1% of the group’s ownership.
Liad Meidar, managing partner at Gatemore, said: “Watches of Switzerland has established itself as the leading retailer of premium watches.
“It is an exceptional business, providing customers a premium experience and boasting longstanding partnerships with some of the strongest brands in the world.
We maintain an open dialogue with all our shareholders but do not comment on individual shareholder views
“With a clear leading position in the UK market, the company is now well positioned to unlock additional growth in the massive and underpenetrated US market.
“We are impressed with the track record and ambition of the management team, and we call on them to consider a listing in the US to fulfil WOSG’s potential and help unlock the intrinsic value of this business.”
A Watches of Switzerland spokesman said: “We maintain an open dialogue with all our shareholders but do not comment on individual shareholder views.”
Shares in the retail business were down 1% at 432.4p on Wednesday morning.