Hong Kong-listed cosmetics giant L’Occitane International has entered a trading halt – fuelling speculation that the company’s controlling shareholder is about to launch a takeover bid ahead of a delisting. 

Bloomberg reported on July 25 that L’Occitane’s Austrian billionaire chairman Reinold Geiger, whose interests control 70 per cent of the issued stock, was mulling buying out minority shareholders. The news agency cited sources that requested anonymity. 

Today, Bloomberg said an offer is “possible” at about US$4.48 per share, representing a 37 per cent premium to the company’s closing price on Tuesday.

L’Occitane’s recent sales growth has been largely driven by its Brazilian brand Sol de Janeiro – now the group’s second-largest label behind its namesake, achieving sales growth of 135.2 per cent last year – and another spinoff brand, Elemis collagen creams. At the end of March, L’Occitane bought Australian skincare brand Grown Alchemist for an undisclosed sum and promptly set about expanding its reach and store network. Its other labels include the Korean skincare brand Erborian and the French organic beauty label Melvita.

This would not be the first time the company has considered going private. In late 2018, US-based private equity group Advent International – which this week acquired a majority stake in Australian fashion brand Zimmermann – reportedly enquired about acquiring the company, which then had an estimated market value of US$2.7 billion.

L’Occitane was listed in 2010 with an IPO that raised $787 million, according to Bloomberg data. The news agency said Geiger was also considering relisting the business in Paris or another European market as early as next year.