Luxury beauty retailer L’Occitane International has received a privatisation offer from its controlling shareholder, L’Occitane Groupe (offeror), intending to delist from the Hong Kong Stock Exchange.
The proposed offer values L’Occitane at €6bn ($6.4bn) on an equity basis and aims to allow the current management team to focus on long-term sustainable growth as a private entity.
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L’Occitane Groupe, which holds a 72.64% stake in the company along with its concert parties, is offering to acquire all outstanding shares it does not already own at a purchase price of HK$34.00 ($4.42) per share in cash.
Both the company and offeror are controlled by Austrian billionaire Reinold Geiger, who is the chairman and director of the two companies.
L’Occitane Groupe plans to finance the deal through external debt facilities from Crédit Agricole Corporate and Investment Bank, with additional capital from Blackstone and Goldman Sachs Asset Management International.
The offeror has indicated that the offer price is final and will not be increased.
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By GlobalDataReinold Geiger stated: “Our family has always taken a responsible, long-term view when it comes to developing our company. The cosmetics sector is undergoing profound changes, and our company has significantly transformed into a geographically balanced multi-brand group, marked by strategic acquisitions such as ELEMIS, Sol de Janeiro and most recently Dr Vranjes Firenze.
“The transaction we are launching today will enable us to focus on rebuilding the foundation for the long-term sustainable growth of our company.”
The board of L’Occitane International has formed an independent committee of non-executive directors to assess the fairness of the offer.
Somerley Capital will serve as the independent financial adviser to guide the IBC in the transaction.
L’Occitane Groupe, with a portfolio of eight brands and 3,000 retail locations across 90 countries, is advised financially by JP Morgan.
