L’OCCITANE Groupe, the controlling shareholder of L’OCCITANE International, has offered to acquire all remaining shares in the business with the aim to privatise and delist the company from the Hong Kong Stock Exchange.
L’OCCITANE Groupe, which is controlled by Chairman and Director Reinold Geiger, already owns 73.4% of both issued and outstanding shares in the company.
L’OCCITANE Groupe has set a final offer price of HK$34 in cash per share for the remaining shares. This represents approximately a 60.83% premium to undisturbed 60-trading day average closing price of HK$21.40 per share. The offer values L’OCCITANE International at an estimated US$7 billion including debts.
L’OCCITANE Groupe intends to finance the acquisition through a combination of external debt facilities provided by the Crédit Agricole Corporate and Investment Bank (CA-CIB). Additional financing and capital will be provided by Blackstone alongside Goldman Sachs Asset Management International.
Geiger, who is currently majority stakeholder of L’OCCITANE Group and L’OCCITANE International, commented: “Our family has always taken a responsible, long-term view when it comes to developing our company.
“The cosmetics sector is undergoing profound changes, and our company has significantly transformed into a geographically balanced multi-brand group, marked by strategic acquisitions such as ELEMIS, Sol de Janeiro, and, most recently, Dr. Vranjes Firenze. The transaction we are launching today will enable us to focus on rebuilding the foundation for the long-term sustainable growth of our company.”
The Board of L’OCCITANE International has established an Independent Board Committee (IBC) which comprised solely of independent non-executive directors. Its objective is to evaluate the offer and make a recommendation to minority shareholders and decide whether the offer is fair and reasonable. Its recommendation will be featured in a jointly published document.
Long-term growth initiatives
L’OCCITANE Groupee said that privatisation will be the key to keeping L’OCCITANE International competitive amid a changing beauty landscape. This is alongside significant investments in marketing, store refurbishment, IT infrastructure as well as recruiting and nurturing talent. These investments, while entailing more expenses in the short-term, will lay the foundation for long-term growth, the company said.
As a privately-owned business, L’OCCITANE International can pursue strategic investments and implement strategies free from market expectations, share price fluctuations, regulatory costs and disclosure obligations. That flexibility is crucial to remaining competitive in the global skincare and beauty industry, the company said.
The offer is subject to a minimum 90% acceptance threshold by shareholders outside of L’OCCITANE Group. The timing of the offer will begin upon completion of the Composite Document, which will be published later. 
Hannah Tan-Gillies