Bang & Olufsen’s Chairman, Ole Andersen, Has Died at 63

(Bloomberg) -- The chairman of Bang & Olufsen A/S, Ole Andersen, has died.

The maker of luxury stereos and TVs didn't provide details, other than to say that the 63-year-old passed away on Tuesday.

“It is with great sadness that we have received the news of Ole passing away,” Kristian Tear, chief executive, and Juha Christensen, interim chairman, said in a statement. “It has been a privilege to work with Ole and we thank him for his great contribution to Bang & Olufsen over the years. Our thoughts and sympathies are with Ole's family and friends in this very difficult time.”

Andersen had been a titan of Danish corporate life, with a long history on the boards of some of the country's best known companies. In 2015, PWC in Denmark named him chairman of the year.

But more recently, Andersen suffered a number of setbacks. Most notably, he was forced out as chairman of Danske Bank in late 2018 by its biggest shareholder, following a vast money laundering scandal that is still being investigated in Europe and the U.S.

The news of Andersen's death comes after a difficult period for B&O, with Covid-19 adding to a long list of issues that dragged down the company's efforts to turn a profit. In its latest attempt to stay afloat, B&O announced it is planning a rights issue to help generate much needed cash.

In mid-May, Andersen said B&O is “in a serious situation,” as he asked investors for more money to get the company through Covid-19. He also said the slump in demand triggered by the virus “hit us at the worst possible time.” B&O had just launched a new strategy “and was starting to see the effects,” he said. But that's now “been halted by this extraordinary situation.”

Analysts have long speculated that Bang & Olufsen's best chance of survival is to be bought, or to form some kind of partnership. Sparkle Roll, a company controlled by Chinese billionaire Qi Jianhong, is the biggest shareholder, and has in the past expressed interest in taking over B&O. But those overtures were previously rebuffed by Andersen.

Some investors worry that Bang & Olufsen might no longer be able to attract buyers. The company's business model has been undercut by music streaming and fast-evolving consumer electronics, underpinning fears that B&O would resort to selling shares, as it now hopes to do.

Read More: B&O Gets One More Chance From Shareholders After Serial Mishaps

Bang & Olufsen will hold an extraordinary general meeting on June 3 and intends to proceed with its rights issue, “subject to obtaining the required approvals at the general meeting,” it said.

The company's shares fell as much as 7.7% after Tuesday's announcement, but have since recovered somewhat. So far in 2020, B&O has lost roughly a third of its market value.

Michael Friis Jorgensen, an analyst at Alm. Brand in Copenhagen, said the share-price decline triggered by the news was “natural,” given the “uncertainty” the development creates. Without Andersen, selling shares is going to be even harder, given the “experience” and “strong network” he brought with him, Jorgensen said.

Danske Bank also commented on Andersen's death: “It is with great sadness that we have received the news of the sudden and untimely passing of Ole Andersen, who for many years served as chairman of Danske Bank's Board of Directors,” the bank said in a statement. “We extend our deepest sympathies to his family at this difficult time.”

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