L’Occitane International, listed on the Hong Kong stock exchange, announced on Monday that its chairman and controlling shareholder would take the French skin-care firm private, valuing it at a maximum of HK$13.91 billion (US$1.78 billion).
Earlier in April, Reuters reported that L’Occitane’s Chairman, Reinold Geiger, was in advanced discussions with investors and lenders for the deal, with U.S. private equity giant Blackstone looking to provide debt financing.
Under the agreement, Geiger’s investment holding company, L’Occitane Groupe in Luxembourg, will acquire outstanding shares at HK$34 each, a 30.8% premium to the stock’s last closing price of HK$26 on Feb. 5.
At the end of March, L’Occitane Groupe already owned 72.39% of the cosmetics company.
The investment holding firm does not plan to increase the offer price. This move follows a previous buyout attempt by Geiger that was shelved a few months ago.
Trading of L’Occitane International’s shares, halted on April 9, is set to resume on Tuesday. J.P. Morgan will serve as the financial advisor for L’Occitane Groupe in the transaction.
