L’Occitane revises privatisation bid to win over undecided shareholders

By Amanda Pauley | Published: 18-Jun-2024

The beauty group’s updated offer now includes an alternative proposal of equity in the new private company

L’Occitane has revised its privatisation bid, offering equity in the new company to entice unsure shareholders.

The French beauty group updated its buyout offer in an exchange filing published on 17 June.

It is now giving shareholders an option between the existing HK$34 per share in cash – which would value the business at $6.4bn on an equity value basis – or ten shares in the new private company for every share held. 

The share offer could win over undecided shareholders who believe the current cash offer undervalues the firm, incentivising them to support the privatisation.

In Hong Kong, where the company has been listed since 2010, the consent of at least 90% of minority shareholders is required for the offer to succeed. 

Trading of L’Occitane shares was temporarily halted on the morning of 17 June in anticipation of the announcement, and then resumed later that day.

L’Occitane’s billionaire owner Reinold Geiger confirmed his intention to privatise the beauty firm via an initial offer in April.

The move would also see the company delisted from the Hong Kong Stock Exchange.

The firm said this move would create more value for minority shareholders and provide “greater flexibility” in making long term business decisions.

“The rationale is to allow the current management team, which would remain in place, to continue operations of the company's business as it is, and invest in long term sustainable growth initiatives as a privately held company,” L’Occitane Groupe said in a statement.

Geiger previously made an attempt to take the business private but the plan was shelved in September 2023.

It has been a time of change for L’Occitane, with the group having sold Australian natural beauty brand Grown Alchemist in April only two years after acquiring it. 

Seasoned executive Laurent Marteau was also named Group CEO following a leadership shake-up.

L’Occitane owns British skin care company Elemis and Gen Z body care and fragrance line Sol de Janeiro, as well as its namesake brand L’Occitane en Provence.

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