H&M leaves the bag? At the moment it is just a rumorguyed by the fact that the Persson family, founder of the Swedish giant, has intensified the purchases of shares of the company, coming to hold about 70% of the capital and almost 85% of voting rights.
The interested interesteds deny, but the observers do not give up and leave the door open to the possibility that H&M may soon turn towards a delisting for a Return to private management of the company.
H&M leaves the bag?
For years the Swedish H&M giant, that is to say Hennes & Mauritz AB, is a symbol of global fast fashion.
Through the Holding Ramsbury Invest, controlled by Patriarch Stefan Persson and his son Karl-Johan Persson, the family has spent over 63 billion Swedes (equal to around 6 billion euros) from 2016 to strengthen his participation in H&M. Ramsbury takes its name from the imposing British holding of the family, now extended for 19,000 acres, a symbol of their influence and rooting in the control of the group.
Officially, the family denied delisting plans. In an interview last year, Karl-Johan Persson, today president of the Board of Directors after having held the role of CEO, said that the purchases of shares reflect confidence in the company’s potential, and not the intention to remove it from the Stockholm Stock Exchange.
However, several analysts don’t say they are convinced. According to Niklas Ekman by DNB Carnegie, if the family continues with the current rhythm of acquisitions, it could reach 90% of the capital within two years, threshold that would formally allow you to start the delisting procedure. At that point, it would be possible to request the removal of the title from the regulated market, perhaps offering an award to minority shareholders.
What are the reasons
For many observers, the operation would have more emotional than economic reasons. Stefan Persson77 years old, was deeply linked to the company founded by the Father Erling Persson in 1947.
After led it for over 16 years as CEO and for more than two decades as president, it continues to influence its strategy. A delisting would allow the family to manage the company without the pressure of the markets, in particular with respect to the short -term logics typical of institutional investors.
In the meantime, H&M effort on the operational front. On the sales front, the brand loses land in Europe also in key countries such as Germany, France and the United Kingdom.
Competitors like Zara are increasingly fierce and to make matters worse, giants of the ultra-back fashion like Shein have arisen. Recent collaborations with celebrities such as Charli XCX did not have the expected effect on the young audience, and the budget of the first quarter has disappointed expectations.
The new CEO, Daniel Hervera man’s man appointed at the beginning of 2024, is trying a relaunch, but so far he has not managed to reverse the course. In addition, the new US duties and the growing attention to sustainability further test the group’s business model.
From the maximum touched about ten years ago, the H&M actions they have lost beyond the 60% of their value, descending to a capitalization of 220 billion of Swedish crowns. A drop that, if on the one hand it represents a problem for institutional investors, on the other offers an opportunity for the Persson family: buying the remaining floating could cost about 70 billion crowns, a more accessible figure if compared with the historical value of the company. Each scenario remains open.
