Swatch boss Hayek considers withdrawing from the stock market
Published: Thursday, Sep 26th 2024, 12:10
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Swatch Group CEO Nick Hayek is thinking aloud about withdrawing the company from the stock exchange. Such a move would certainly be advantageous, he said in an interview with the business magazine "Bilanz" (preprint of the issue of September 27). "We are considering what we can do," he continued, without going into further detail.
The Hayek pool currently holds 28.5 percent of the Swatch Group's capital and 44 percent of the votes. This is a new high and close to the 49 percent at which a takeover bid would be due according to the articles of association, writes "Bilanz". Hayek recently took advantage of the low stock market prices to buy up shares in his company.
No time pressure
According to the report, the Hayek family's relations with stock market players are strained. Like his father Nicolas before him, the entrepreneur Hayek relies on a solid balance sheet, on the numerous factories and the employees who work there. Even in times of declining demand, he deliberately forgoes the opportunity to optimize margins.
"For me as an entrepreneur, it doesn't matter whether an analyst has a positive opinion of the share or not, it is irrelevant to our business model or strategy," Hayek makes clear. There are no roadshows for analysts because no special interests are served. "And we don't make any profit forecasts because we think and work very long-term."
It remains to be seen whether there will be a going private and when this might be the case. Hayek does not see himself under any time pressure. However, if this were to happen, he would pay a premium to the shareholders of the Group, which is currently undervalued on the stock exchange at around 8 billion Swiss francs. "In the current situation, we would have to pay at least 30 to 40 percent on top," said the Swatch CEO.
Hope for China recovery
The Group's operating business in the Greater China region (including Hong Kong and Macau) suffered a decline in sales, as did the entire Swiss watch industry. "Yes, we have slumps of up to 50 percent there. That is difficult to make up for, even if things are going well elsewhere," explained Hayek.
Omega fell by around 30 percent in this region, Tissot by around 20 percent and Longines also by around 30 percent. Swatch, on the other hand, is up one percent. However, the market remains very important and investments will continue. "I am pretty sure that we will be able to achieve an increase of 10 to 20 percent in 2025 compared to 2024." The Chinese have money, but they are not spending it so quickly at the moment, said Hayek.
The Swatch brand is doing well worldwide, thanks in part to new models from the MoonSwatch range. "The 'Mission to the Super Blue Moonphase' was sold out within 19 days," explained Hayek. But the other core collections have also grown and the brand achieved a record result last month.
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