L'Occitane, a French beauty brand, suspends trading activities in Hong Kong.

04 Sep, 2023

L'Occitane, a French beauty brand, suspends trading activities in Hong Kong.

Trading in L'Occitane, the renowned French beauty brand, was suspended in Hong Kong on Monday amid reports suggesting that its majority shareholder may be contemplating a privatization move.

The luxury retailer celebrated for its skincare offerings and fragrances, had made a significant splash in 2010 with its Hong Kong initial public offering, raising over $700 million on the wave of optimism surrounding the booming Chinese consumer market.

As reported by Bloomberg News in July, Chairman Reinold Geiger had been exploring options for taking the brand private, potentially utilizing a holding company that possessed over 70 percent of its shares.

L’Occitane International SA announced on Monday that its Hong Kong-listed stocks would be halted "pending the publication of an announcement pursuant to the Code on Takeovers and Mergers," as stated in an exchange filing.

While headquartered in Luxembourg and Geneva, the firm had disclosed the previous month that it was considering a potential privatization deal with a proposed offer price of no less than HK$26 ($3.30) per share but noted that it had not yet received any firm offers. The stock had closed at HK$27.80 on Thursday, with the market closed on Friday due to a typhoon.

L’Occitane's stock price had remained relatively stable during the first half of the year before experiencing a significant spike of around 40 percent in late July.

The decision to list in Hong Kong had come at a time when Western brands were actively seeking innovative ways to tap into the rapidly expanding Chinese consumer market.

The brand's diverse portfolio includes L’Occitane en Provence, the French beauty brand Melvita, the Korean skincare line Erborian, and Elemis, a British care product brand.