French beauty brand L’Occitane International has recently announced its decision to delist its shares from the Hong Kong Stock Exchange and return to private ownership. This move comes as the company faces challenges in the luxury goods market, as well as the complexities of being a publicly listed company. Majority stakeholder Reinold Geiger has offered €1.7bn to buy out the remaining shares, with the support of financial giants Goldman Sachs and Blackstone.
The company has received strong support from disinterested shareholders, with 91.97% agreeing to sell their shares for the privatisation attempt to succeed. L’Occitane Holding, a subsidiary owned by Geiger, will now proceed with the compulsory takeover of the remaining shares. Established in 1976 in France, L’Occitane International operates over 3,000 stores in 90 countries and owns multiple brands besides L’Occitane.
Geiger stated that going private will allow the company to make longer-term business decisions and focus on brand-specific strategies to enhance competitiveness in the skincare and cosmetics industry. The decision to delist is partly driven by increased competition in the luxury sector and changing consumer trends post-Covid-19, as well as the desire to update and strengthen its core brands.
L’Occitane remains committed to its employees, business partners, and stakeholders, with plans for accelerated growth and potential future strategies including a re-listing or sale. The company hopes that going private will enable it to navigate challenges in the market and position itself for long-term success.
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