L’Occitane International is preparing to delist from the Hong Kong Stock Exchange.
The multi-brand beauty group has exceeded the percentage threshold of tendered shares required for billionaire owner Reinold Geiger to finally take L’Occitane International private.
In April, Geiger, the controlling shareholder of L’Occitane International via his investment holding company L’Occitane Groupe, made an official offer to acquire outstanding shares in the company, valuing the skin care player at €6bn.
More recently, the Austrian entrepreneur tweaked his proposal of equity to entice unsure shareholders.
The revised deal gave shareholders a choice between the existing HK$34 per share in cash, or ten shares in the new private company for every share held.
Geiger’s upgraded offer proved fruitful, as the Elemis and Sol de Janeiro owner revealed that 91.97% of disinterested shareholders have now tendered their shares.
This percentage surpasses the threshold for a squeeze-out of shares not tendered to the share offer.
As a result, L’Occitane Holding, another wholly-owned subsidiary of the controlling shareholder, will acquire the remaining shares.
The move will prime the way for the final steps in L’Occitane International’s privatisation process.
Geiger said of the milestone: “We are delighted with the strong support from our shareholders.
“This transaction will provide our group with the flexibility to make longer term business decisions.”
He added: “We remain committed to our brand-specific and geography-specific strategies.
“We firmly believe that this is in the best interests of our employees, business partners and other stakeholders, who will benefit from our accelerated growth and enhanced competitiveness in the global skin care and cosmetics industry.”
The move marks a long-time goal for Geiger, who Bloomberg reported last summer was looking to buy the minority of shares he did not already own in L’Occitane International.
His reported eventual aim was to seek a higher valuation for the beauty company via a European listing.
The plan was shelved shortly after, but reports that Geiger was mulling a team-up with Supergoop! owner Blackstone began circling as early as February this year.
Both Blackstone and Goldman Sachs will help finance the transaction.
According to L’Occitane Groupe, L’Occitane International will suspend its shares on 7 August and upon completion of the acquisition, it will delist from the Hong Kong Stock Exchange.
