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L’Occitane is set to exit the public market in August, after gaining the approval of enough shareholders to permit such a move, the company said Tuesday.
The French-founded firm, which owns the brands like Sol de Janiero and Elemis as well as its namesake line, launched a formal privatisation bid in April, though rumours had swirled such a plan was underway since last summer. In June, it updated its offer to include the option to hold shares in the new private company in an attempt to win over stubborn shareholders. The company has been listed on the Hong Kong exchange since 2010.
In a release, the company’s chairman, Reinold Geiger, who owns more than 70 percent of the company’s shares, said the transaction will provide the group with the flexibility to make longer-term business decisions and work in a more geography-specific and brand-specific manner. It is in the best interests of employees and other stakeholders, who will benefit from new growth and competitive abilities, he added.
L’Occitane said will dispatch compulsory acquisition notices for any shareholders who have not agreed to sell on August 6.
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L’Occitane Is Going Private. Here’s Why.
Going public is usually a pivotal moment in a company’s history, cementing its heavyweight status and setting it up for expansion. In L’Occitane’s case, delisting might be a bigger conduit for growth.
