L’Occitane has described some of the details in media reports about a plan by its controlling shareholder to privatise the company as “misleading” and “baseless” – but has confirmed the takeover plan is under consideration.
As reported by Inside Retail last week, Austrian billionaire chairman Reinold Geiger, whose interests control 70 per cent of the issued stock, is mulling buying out minority shareholders. The story was broken by Bloomberg, which cited sources that requested anonymity.
In a statement – signed by Geiger as chairman – L’Occitane said it notes that media reports include “additional market rumours and speculations, including a misleading timetable and baseless rumour about the offer price, which is speculated to be HK$35.00 per share”. That equates to US$4.48.
“The controlling shareholder has further confirmed to the board that the speculated price contained in the media reports is false and without basis, and this figure was neither authorised nor came from the controlling shareholder. Any potential offer price, if the contemplated transaction proceeds to that stage, would be determined with reference to the undisturbed price of HK$20.95 per share (the closing price as of July 25, which is prior to release of the media reports) and the undisturbed average daily closing price of HK$20.41 per share for the 30 trading days leading up to and including the undisturbed date. The potential offer price would be no less than HK$26.00 per share.”
Bloomberg did note in its story – as Inside Retail made clear – that the information quoted was from internal sources, not publicly authorised and defined the $35 figure as “possible”.
L’Occitane says Geiger has confirmed his investment vehicle is “contemplating a possible transaction, and assuming that it is feasible and if it proceeds, which is uncertain at this stage, it is contemplated that the controlling shareholder would make a conditional voluntary general offer under the Takeovers Code”.
A bid may not proceed, the statement said, “depending on market conditions and pending a feasible financing and structure option”.