L’Occitane Owner Offers Buyout That Values Company at €6 Billion
Luxembourg-based cosmetics company says that the offer from L’Occitane Groupe to buy the remaining shares would cost €1.7 billion
L’Occitane International received an offer from the controlling shareholder group, led by Australian billionaire Reinold Geiger, to buy the company and take it private in a bid that values the company at 6 billion euros ($6.42 billion).
The Luxembourg-based and Hong Kong-listed cosmetics company said Monday that the offer from L’Occitane Groupe, Geiger’s holding company, to buy the remaining shares would cost €1.7 billion. Geiger’s group and its partners own 72.64% of the shares.
Delisting the company would allow more freedom to make investment decisions without worrying about meeting expectations from public investors or changes in share prices and short-term market trends, L’Occitane said.
Plans include investments in marketing, upgrading stores, improving IT systems and hiring skilled employees, the company said, adding that the upfront costs will set the stage for future growth in a growingly competitive cosmetics market.
“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 International said.
Geiger is the chairman and director of both the company and offering group.
The offer carries a purchase price of HK$34.00 ($4.34) a share.