L’Occitane International share prices have jumped amid news that its controlling shareholder, Reinold Geiger, is considering a deal to buy the shares he does not currently own.
The Luxembourg and Geneva-headquartered, but Hong Kong-listed company confirmed in a statement that Geiger’s investment holding firm, L’Occitane Groupe, was contemplating a possible transaction.
In response, L’Occitane International shares closed more than 8% up at HK$27.75 on Monday.
Shares in the firm were initially halted following a 9 August Bloomberg article, reporting that Geiger was nearing a deal to buy out L’Occitane and could later seek higher valuation with a European listing.
While the skin care player’s statement confirmed Geiger’s intentions, it added that initial media reports of each L’Occitane share being priced at HK$35 were incorrect and "without basis".
It added that any potential offer price would be no less than HK$26 per share.
Geiger’s L’Occitane Groupe owns just shy of 73% of shares in the skin care company.
Rumours that Geiger was mulling a buyout began swirling last month following a strong start to the 2024 financial year for L’Occitane.
Read more:
- L’Occitane’s top shareholder mulling $4.2 billion buyout
- Sol De Janeiro drives double-digit sales growth for L’Occitane in Q1 2024
- L’Occitane 2023 profits dragged down by Russian divestiture and lagging brands
