Bang & Olufsen enlists partners for expansion in China

Danish electronics manufacturer Bang & Olufsen (BUOB.FRA), partnered with privately owned Sparkle Roll Holdings and A Capital, a Europe-China capital fund, in an effort to raise capital to boost sales tenfold in the Chinese market, Reuters reported. The company plans to raise US$29.2 million in share issuance for its new partners.  “The strategic partnership will be important for accelerating our growth in China,” said Tue Mantoni, Bang & Olufsen’s chief executive. The deal was initiated by A Capital, which suggested Bang & Olufsen partner with a local firm to facilitate expansion in China, said the fund’s chairman Andre Loesekrug-Pietri. Bang & Olufsen saw its shares rise 10% to US$10.95 on the news. Bang & Olufsen is one of many luxury brands to focus on the Chinese market to offset slowing demand from Europe and the US.