L’Occitane revises privatisation bid

L’Occitane has revised its privatisation bid, offering equity in the new company to win over undecided shareholders who believe the current cash offer undervalues the firm.

The beauty giant updated its buyout offer in an exchange filing published earlier this week, now giving shareholders an option between the existing HK$34 per share in cash or ten shares in the new private company for every share held, according to BoF.

Trading of its shares were halted on the morning of 17 June in anticipation of the announcement, and then resumed later that day.

L’Occitane originally made an initial privatisation bid in April this year, with billionaire chairman Reinold Geiger - who owns more than 70% of the company’s shares - partnering with Blackstone and Goldman Sachs to fund the $1.8 billion takeover.

The move, which would also see the company delisted from the Hong Kong Stock Exchange after first being listed in 2010, would create more value for minority shareholders and provide "greater flexibility" in making long-term business decisions.

L’Occitane was founded by Olivier Baussan in 1976 and now, nearly 50 years later, it trades from approximately 2,774 sites in 90 countries. The company, which owns L'Occitane en Provence, Melvita and Erborian, boasts over 8,500 employees.

It has strengthened its portfolio over recent years by acquiring Elemis in a $900 million deal in 2019 and taking majority stakes in Sol de Janeiro in 2021 and Grown Alchemist in 2022, which was taken private earlier this year in a bid to accelerate growth.