(News Bulletin 247) – L’Occitane securities are again suspended from trading, while its majority shareholder seeks to remove the French brand from the Hong Kong Stock Exchange.
Trading in French cosmetics brand L’Occitane was halted again on the Hong Kong Stock Exchange on Monday after reports emerged that its majority shareholder may buy back shares in the company it does not yet own. .
The high-end retailer had raised more than $700 million (648 million euros) when it went public in Hong Kong in 2010, buoyed by optimism about the booming Chinese consumer market.
Bloomberg News claimed in July that Chairman Reinold Geiger was exploring options to buy back the brand’s securities he does not yet own, using a holding company that owned more than 70% of its shares.
A quotation in Europe?
According to market sources, L’Occitane is also considering listing the company in Europe. Trading in L’Occitane shares had already been suspended in August.
The company, which is headquartered in Luxembourg and Geneva, said last month it was considering an offer for the securities it does not own at at least HK$26 ($3.30) per share, but she had “not received any firm offers” at the time.
The stock closed at HK$27.80 on Thursday, before the market closed on Friday due to a typhoon. L’Occitane’s share price remained stable in the first half before climbing around 40% since the end of July.
The brand’s introduction to Hong Kong had come at a time when Western brands were looking for new ways to tap into the growing Chinese consumer market.
The group’s portfolio includes the brands L’Occitane en Provence, Melvita, the Korean skincare line Erborian and Elemis, a British skincare brand.
(With AFP)
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