L’Occitane chairman offers new option to minor shareholders in privatisation bid

(Source: L'Occitane Group)

Hong Kong-listed L’Occitane International said on Monday its chairman Reinold Geiger has offered minority shareholders an alternative takeover proposal, as he pursues to take the skincare firm private.

Geiger, whose firm owns about 72.4 per cent of L’Occitane, is now offering the remaining shareholders an option between the existing $4.35 apiece cash offer and a scrip alternative of 10 shares in the new private entity for every share held.

The cash offer values the shares Geiger does not already own at a maximum value of $1.78 billion including the value of vested options, L’Occitane said in a filing to the Hong Kong Stock Exchange.

The offer comes at a time when several Hong Kong-listed companies are exploring take-private options in a volatile stock market affected by China’s economic slowdown and a lack of strong stimulus policies.

L’Occitane shares, trading in which was halted earlier in the day, closed at $4.18 on June 14, and have risen more than 10 per cent since the privatisation offer was first announced on April 29.

  • Reporting by Sameer Manekar in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich, of Reuters.

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