New York, NY - May 14,2015 - PTG Capital Partners Announces Offer for Avon Products, inc. PTG Capital Partners Ltd. ("PTG Partners") announced today that it has submitted an offer to the board of directors of Avon Products, Inc. (the "Company") (NYSE:AVP) proposing to acquire all of the Company's outstanding stock, and outstanding options to acquire such shares, in a recommended cash tender offer at a price per share of US$18.75 (the "Proposed Offer").
Direct seller Avon has been thrust into the spotlight after it appeared to receive a bid from a mysterious company for nearly three times its market value (see right).
The bid appeared to have been submitted by PTG Capital Partners via a US Securities and Exchange Commission filing, offering $18.75 (£11.95) per share to buy Avon.
However, the bid was suspicious from the outset, and checks revealed PTG Capital Partners did not appear to exist, and its UK-based telephone number only had a voicemail option.
Furthermore, the filing that was submitted was littered with mistakes. At some points, PTG Capital Partners referred to itself as TPG, which is a legitimate private equity company based in Texas. TPG consequently said it was completely unrelated to PTG Capital Partners.
Avon was quick to address speculation. In a statement, it said: “Avon reports that it has not received any offer or other communication from such an entity and has not been able to confirm that such an entity exists.”
As a result of the incident, shares in Avon rocketed by 20%, peaking at $8. However there was a halt in Avon’s stock trading three times on the day the filing was submitted, due to volatility following the initial coverage. A total of 50 million shares are said to have changed hands.
The latest incident comes at a difficult time for Avon. The company has been hit with fines from the US Securities and Exchange Commission for paying out bribes and gifts to Chinese officials, and Avon is now rumoured to be exploring the sale of its North American business.
