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The owner of L’Occitane is considering taking the business private in a move that has seen shares in the cosmetics groups rise sharply.
Reinold Geiger, who already controls over 70% of the group, is said to be “contemplating a possible transaction” that could see him take the group private, according to a filing the group made on the Hong Kong stock exchange.
The filing said that “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”.
However, it noted that Geiger was still considering all options, including the “option of not pursuing any transaction at all, depending on market conditions and pending a feasible financing and structure option”.
The company said: “The controlling shareholder has confirmed to the board that, as at the date of this announcement, no definite plans have been approved, no definitive agreements relating to any of these options, including the contemplated transaction, have been entered into, and no definite proposal and terms can be put forward to the board.
“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.”
It noted that any potential offer price would be determined with reference to the undisturbed price of HK$20.95 £2.11) per share, and that a potential offer price would be “no less” than HK$26.00 (£2.62) per share.
The filing had also refuted previous media reports about plans to privatise the company and relist its securities on another stock exchange.
L’Occitane said: “The company notes that these 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 (£3.52) per share.”
