L’Occitane International is considering a move to go private, as the skincare company’s largest stakeholder looks to buy up even more shares in the Hong Kong-listed company, according to a report.
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Sources told local Chinese newspaper South China Morning Post that billionaire chairman Reinold Geiger is weighing up the possibility of buying out minority shareholders of the group, and that he has been exploring various financing options for the potential deal,
Geiger currently owns some 70 percent of the group, whose portfolio includes France’s L’Occitane en Provence; organic beauty brand, Melvita; skincare brand, Elemis, as well the Grown Alchemist skincare range, Sol de Janeiro, and Korean skincare brand, Erborian.
Representatives for L’Occitane did not respond to requests for comment. Geiger did not immediately reply to emailed queries.
Headquartered in Luxembourg and Geneva, L’Occitane International listed on the Hong Kong Stock Exchange in 2010, raising USD 787 million in its initial public offering, according to Bloomberg.
The stock has fallen 14 percent over the past 12 months, giving the company a market value of about HK D33 billion (USD 4.2 billion).
Earlier this year, L’Occitane reported sales for the nine months ended December 31 reached EUR 1.6 billion (USD 1.76 billion), representing 16.5 percent growth at reported rates and 10.6 percent growth at constant rates.