L’Occitane buyout rumours push spike in share prices

By Julia Wray | Published: 15-Aug-2023

Hong Kong-listed L’Occitane International’s controlling shareholder is contemplating a deal to take the company private

L’Occitane International share prices have jumped amid news that its controlling shareholder, Reinold Geiger, is considering a deal to buy the shares he does not currently own.

The Luxembourg and Geneva-headquartered, but Hong Kong-listed company confirmed in a statement that Geiger’s investment holding firm, L’Occitane Groupe, was contemplating a possible transaction.

In response, L’Occitane International shares closed more than 8% up at HK$27.75 on Monday.

Shares in the firm were initially halted following a 9 August Bloomberg article, reporting that Geiger was nearing a deal to buy out L’Occitane and could later seek higher valuation with a European listing.  

While the skin care player’s statement confirmed Geiger’s intentions, it added that initial media reports of each L’Occitane share being priced at HK$35 were incorrect and "without basis".

It added that any potential offer price would be no less than HK$26 per share.

Geiger’s L’Occitane Groupe owns just shy of 73% of shares in the skin care company.

Rumours that Geiger was mulling a buyout began swirling last month following a strong start to the 2024 financial year for L’Occitane.

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