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L'Occitane confirms offer from majority shareholder

Shop L'Occitane en Provence in the barrio de Salamanca in Madrid

Shop L'Occitane en Provence in the barrio de Salamanca in Madrid. Photo: Cristina Arias/Cover/Getty Images

L'Occitane International formed a committee to weigh an offer by majority shareholder Reinold Geiger to buy the shares he does not own.

Why it matters: The take-private deal would allow the challenged French beauty retailer to operate without the distraction of being public.

Zoom in: Geiger would shell out HK$34 per share — nearly a 61% premium to the 60-day average closing price.

  • The offer values the remaining shares at €1.7 billion and the entire company's equity at €6 billion.
  • Investors accounting for nearly 26% of the shares that Geiger is offering to buy have already agreed to tender them.
  • Investors representing 12% of those same shares have agreed to recommend the offer.

Financing will be provided by a combination of debt provided by Crédit Agricole alongside funds from Blackstone and Goldman Sachs Asset Management.

Catch up quick: Bloomberg reported the company was near a deal with Geiger on Sunday.

  • Geiger, the chairman, via L'Occitane Groupe, owns nearly 73% of the shares outstanding.

What they're saying: "The rationale is to allow the current management team, which would remain in place, to continue operations of the company's business as it is and invest in long-term sustainable growth initiatives as a privately held company," L'Occitane said in a statement.

💭 Our thought bubble: The offer lets L'Occitane go private at a healthy premium without having to take on a lot of debt.

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