Global luxury retailer L’Occitane International’s “disinterested shareholders” have tendered their shares, surpassing “the required threshold for conducting a squeeze-out of shares not tendered to the share offer”, according to a July 23 company media release.
The offer was made in April 2024 for the shares chairman and controlling shareholder Reinold Geiger doesn’t own for HK$13.9 billion ($1.78 billion). He owned around 72.4% of the Luxembourg-headquartered firm's shares around March 2024.
As a result, L’Occitane Holding, a wholly-owned subsidiary of the company’s controlling shareholder will proceed with the compulsory acquisition of the remaining shares, leading to the final steps in the company’s privatisation process.
Austrian billionaire Geiger said in the media release: “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.”
Geiger 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 skincare and cosmetics industry.”
The offers will close on August 6, 2024, following which, the offeror will despatch compulsory acquisition notices for all remaining shares, the release sid.
The company said it will release further announcements to provide shareholders with details regarding the withdrawal of its listing of shares from the Hong Kong Stock Exchange (HKEX) and the subsequent steps in the privatisation process. L’Occitane International will apply to suspend dealings in the shares from August 7, 2024 until the withdrawal of listing of the shares.
Upon completion of the compulsory acquisition, L'Occitanee will delist from the HKEX, which will be a blow to market still trying to recover ground after protests across the city, the fallout from Covid and greater control from China. L'Occitane had listed on the HKEX in May 2010 when it raised $708 million.
Financing for the offer is expected to be financed through Crédit Agricole Corporate and Investment Bank, additional funding from Blackstone and Goldman Sachs Asset Management International, or its affiliates.
L’Occitane operates in 90 countries including in North America, South America, Europe, Asia, Australia and Africa.
