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Tuesday, May 21, 2024

L’Occitane shares surge in Hong Kong after privatisation provide


Shares in French skincare large L’Occitane jumped nearly 13 % in Hong Kong on Tuesday as they resumed buying and selling after its proprietor supplied to take it personal.

A complete firm worth of greater than USD 6 billion

Austrian billionnaire Reinold Geiger mentioned he would purchase again all of the shares he doesn’t personal for practically US$1.78 billion, the corporate mentioned in an announcement to the town’s inventory alternate on Monday night time.

The provide, submitted with the assist of US personal fairness large Blackstone, issues practically 28 % of the shares. It values the corporate at round greater than USD 6 billion.

The agency soared as a lot as 12.9 % to HK$33.30 within the morning earlier than paring the positive aspects. The provide value of HK$34 per share was a 15.25 % premium to its closing value of HK$29.50 when the corporate halted buying and selling three weeks in the past forward of the provide.

More and more aggressive markets

Privatisation would free the corporate “from the pressures of the capital markets’ expectations, regulatory prices and disclosure obligations, share value fluctuations, and sensitivity to short-term market and investor sentiment,” the corporate mentioned within the announcement.

Geiger believed important additional funding in advertising and marketing could be essential to invigorate the model’s shares in more and more aggressive markets, citing stress from weakening client sentiment and rising rivalry from native manufacturers in China, the corporate’s second-largest market.

L’Occitane Worldwide in September rejected a suggestion from Geiger’s funding holding firm, L’Occitane Group, which on the time owned greater than 72 % of the agency.

Based in France’s southern area of Provence in 1976, the luxurious cosmetics retailer listed in Hong Kong in 2010. The group’s portfolio contains the manufacturers L’Occitane en Provence, L’Occitane au Brasil, Melvita, Erborian, Sol de Janeiro, Dr. Vranjes Firenze and Elemis.

Its share value peaked in 2022 at HK$32.45 ($4.14), greater than double its IPO value.

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