THE WHAT? L’Occitane has revised its privatization bid, offering shareholders an choice to decide on between HK $34 (US$4.35) per share in money or 10 shares within the new non-public firm for each share held.
THE DETAILS The preliminary privatization bid was made in April by billionaire chairman Reinold Geiger, who partnered with Blackstone and Goldman Sachs to fund the US$1.8 billion takeover. Geiger at present owns over 70% of L’Occitane’s shares. The corporate, which has been listed in Hong Kong since 2010, wants the consent of at the least 90% of minority shareholders for the supply to succeed. The money supply values L’Occitane at US$6.4 billion.
L’Occitane owns a number of well-known manufacturers, together with its namesake L’Occitane en Provence, the skincare line Elemis, and the favored Gen-Z physique and perfume line Sol de Janeiro. Given the success of manufacturers like Sol de Janeiro, which is anticipated to achieve US$1 billion in retail gross sales this monetary yr, some shareholders could really feel that the present money supply undervalues the agency.
THE WHY? The revised supply goals to sway shareholders who’re reluctant to simply accept the unique money bid, believing it doesn’t absolutely mirror the corporate’s worth. By providing fairness within the new non-public firm, L’Occitane hopes to offer an incentive for shareholders to help the privatization.
