Blackstone is in talks to acquire L'Occitane. The aim of this takeover is to exploit the low valuation of the cosmetics brand, as well as that of many other companies listed in Hong Kong, in the hope of relaunching them elsewhere to obtain a better valuation in the future.
At the heart of the deal is L'Occitane's chairman, who holds a majority stake of over 70% in the company. He is working closely with Blackstone to structure the financing required to complete the takeover. The current situation seems conducive to such a move, with an environment that could favour the success of the operation.
This move could herald a new trend, with several Hong Kong-listed companies considering delisting. Faced with persistently low valuations, owners and shareholders recognise that these conditions could persist. They are therefore increasingly considering privatisation as a viable strategy to revitalise their companies and seek better valuations elsewhere.
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