L’Occitane to delist from HK stock exchange after winning over majority shareholders

25 Jul 2024 --- L’Occitane International is going private after 91.97% of its disinterested shareholders tender their shares, reaching over the required amount for a “squeeze-out.” 

The move will allow L’Occitane Holding, a subsidiary of the controlling shareholder, to proceed with the compulsory acquisition of remaining shares, completing the company’s privatization process.

With shareholder approval, the French company will suspend share trading on August 7 until the shares are delisted from the Hong Kong stock exchange.

L’Occitane is the parent company of Sol de Janiero, Elemis, Melvita, Erborian and other personal care brands. 

Reinold Geiger, current majority owner of L’Occitane and the offeror, states: “We are delighted with the strong support from our shareholders. This transaction will provide our group with the flexibility to make longer-term business decisions.”

“We remain committed to our brand-specific and geography-specific strategies. We firmly believe that this is in the best interests of our employees, business partners and other stakeholders, who will benefit from our accelerated growth and enhanced competitiveness in the global skin care and cosmetics industry.” 

Reinold Geiger, chairman, director and majority shareholder of L’Occitane Groupe.The offer to privatize will expire on August 6. The offeror will then send notices of mandatory acquisition for the remaining shares.

L’Occitane making headlines
Last month, L’Occitane announced its annual results for FY2024, achieving net sales of €25.4 billion (US$27.2 billion), a 19.1% year-over-year increase compared to last year. The company noted strength with its popular Gen Z brand, Sol de Janeiro, which grew a whopping 167%, while its flagship, L’Occitane en Provence, had a “steady performance.”

Furthermore, the company previously sweetened its bid, offering shareholders the option of receiving HK$34 (US$4.35) per share in cash or ten shares in the new private company for every share held.

Billionaire chairman Geiger made the initial privatization bid with Blackstone and Goldman Sachs in April. Geiger currently owns over 70% of L’Occitane’s shares and previously bought outstanding shares worth up to HK$13.91 billion (US$1.8 billion). 

In the same month, clean personal care brand Grown Alchemist left L’Occitane “to accelerate brand growth” as a private company.

By Venya Patel