According to Bloomberg News, Blackstone is contemplating a bid for L’Occitane International SA, a skincare company listed in Hong Kong. The potential acquisition has propelled L’Occitane’s shares to their highest point in two years.
Sources familiar with the matter revealed that Blackstone has initiated preliminary due diligence as part of its evaluation for a buyout bid. Additionally, there is speculation about the private-equity giant potentially collaborating with Reinold Geiger, the billionaire chairman of L’Occitane, for the acquisition.
L’Occitane, valued at $5.36 billion and competing with cosmetic giants like L’Oreal SA, saw its shares surge by as much as 15.4% to HK$30, reaching their peak since February 14, 2022.
It’s worth noting that aside from Blackstone, other potential suitors may also express interest in acquiring L’Occitane. However, discussions are still in the early stages, and there’s no assurance that they will culminate in a formal proposal.
Last September, Austrian billionaire Reinold Geiger, L’Occitane’s majority shareholder, decided against privatizing the company, a move that had initially caused a decline in the company’s stock value. The proposed buyout offer came from Geiger’s investment holding firm, L’Occitane Groupe SA, coinciding with a period when Hong Kong was witnessing a surge in buyout activities, with many Western companies seeking to expand their presence in the rapidly growing Chinese market.
L’Occitane debuted on the Hong Kong stock exchange in 2010, becoming one of the first Western companies to list its primary shares in the Asian financial hub.