Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A fortnight ago, I sought access to <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>'s lesser-known shareholder register, a byproduct of investigative disclosure reports under Chapter 571, s329 of the Securities and Futures Ordinance.</li>
<li>This is the same register I discussed in <a href="https://www.smartkarma.com/insights/giordano-709-hk-a-closer-look-at-the-shareholder-register-ahead-of-the-sgm" target="_blank" data-smartkarma-citation="insights:132358" rel="noopener">Giordano (709 HK): A Closer Look At The Shareholder Register Ahead Of The SGM</a>; and one also used by proxy solicitors. </li>
<li>The register confirms what has been long rumoured about a certain shareholder activist. It is also informative for what isn't present. </li>
</ul>


A fortnight ago, I sought access to L'Occitane (973 HK)'s lesser-known shareholder register, a byproduct of investigative disclosure reports under Chapter 571, s329 of the Securities and Futures Ordinance.
This is the same register I discussed in Giordano (709 HK): A Closer Look At The Shareholder Register Ahead Of The SGM; and one also used by proxy solicitors. 
The register confirms what has been long rumoured about a certain shareholder activist. It is also informative for what isn't present. 


L'Occitane (973 HK): Who Owns What, And When

<ul>
<li>Concurrent with its <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0429/2024042905713.pdf" target="_blank" rel="noopener">HK$34/share VGO</a>, <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>'s disinterested shareholders may be entitled to a share scrip alternative. IF afforded, up to 5% of shares out can participate.</li>
<li>The big unknown is whether you receive shares of the levered-up Bidco, at some as yet undetermined scrip ratio; or keep shares of L’Occitane as-is.</li>
<li>To trigger the rollover option, 10% of disinterested shareholders need to express interest by the 15th May (a Hong Kong holiday btw). A deadline without details. </li>
</ul>


Concurrent with its HK$34/share VGO, L'Occitane (973 HK)'s disinterested shareholders may be entitled to a share scrip alternative. IF afforded, up to 5% of shares out can participate.
The big unknown is whether you receive shares of the levered-up Bidco, at some as yet undetermined scrip ratio; or keep shares of L’Occitane as-is.
To trigger the rollover option, 10% of disinterested shareholders need to express interest by the 15th May (a Hong Kong holiday btw). A deadline without details. 


L'Occitane (973 HK): The Rollover Option, And Alternate Listing Valuations

Analyst

Steve

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> announced after market close yesterday that the controlling shareholder has terminated the potential general offer. </li>
<li>Shares trade at a significant discount to global cosmetics peers and its own historical trading range, while brands' growth momentum remain intact. </li>
<li>Take advantage of any potential significant sell-down caused by the drop of the privatization attempt. </li>
</ul>



L'Occitane (973 HK) announced after market close yesterday that the controlling shareholder has terminated the potential general offer. 
Shares trade at a significant discount to global cosmetics peers and its own historical trading range, while brands' growth momentum remain intact. 
Take advantage of any potential significant sell-down caused by the drop of the privatization attempt. 


L'Occitane (973 HK):  Underlying Fundamentals Intact

<ul>
<li>L'Occitane (973 HK) announced a strong 3QFY24 operational update last night.  Share price is up 7% today and up 36% since interim results announcement late November last year.</li>
<li>Sol de Janeiro, the Brazilian-inspired premium body care brand, continued to shine in the quarter, growing 199% at reported sales and 214% at constant currency. </li>
<li>Recommend to take advantage of the current weak sentiment on such companies trading on the HK stock exchange but are actually not reliant on China in terms of business fundamentals.</li>
</ul>


L'Occitane (973 HK) announced a strong 3QFY24 operational update last night.  Share price is up 7% today and up 36% since interim results announcement late November last year.
Sol de Janeiro, the Brazilian-inspired premium body care brand, continued to shine in the quarter, growing 199% at reported sales and 214% at constant currency. 
Recommend to take advantage of the current weak sentiment on such companies trading on the HK stock exchange but are actually not reliant on China in terms of business fundamentals.


L'Occitane (973 HK):  Operational Update Shows Strong Growth Momentum

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>So far, about 49.8% of disinterested shares from Irrevocable Undertakings/Non-binding Letters of Support would accept the Share Offer. Success is within reach based on a “good enough” privatization price. </li>
<li>The Share Alternative is mainly aimed at investors who are hoping for the future re-listing of L'Occitane in the overseas markets - They can still get a vantage point.</li>
<li>However, re-listing seems still distant/uncertain. The value of Rollover Shares in the future remains uncertain. Investors would face risks if they choose the Share Alternative. The Cash Alternative is preferred.</li>
</ul>


So far, about 49.8% of disinterested shares from Irrevocable Undertakings/Non-binding Letters of Support would accept the Share Offer. Success is within reach based on a “good enough” privatization price. 
The Share Alternative is mainly aimed at investors who are hoping for the future re-listing of L'Occitane in the overseas markets - They can still get a vantage point.
However, re-listing seems still distant/uncertain. The value of Rollover Shares in the future remains uncertain. Investors would face risks if they choose the Share Alternative. The Cash Alternative is preferred.


L'Occitane (973.HK) - The Privatization Is About to Succeed

Hong Kong

L'Occitane International S.A. is a global, natural and organic ingredient based cosmetics and well-being products enterprise.  The Company designs, manufactures and markets a wide range of cosmetics and well-being products based on natural and organic ingredients sourced principally from or near Provence.

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L'Occitane (973 HK)

L'Occitane (973 HK): Who Owns What, And When

L'Occitane announces the share alternative - 10 Rollover Shares for each Offer Share. Maximum L'Occitane shares to be rolled over is 737.431mn (5%...

David Blennerhassett

L'Occitane (973 HK): The Rollover Option, And Alternate Listing Valuations

If you are an arbitrageur, I'd be buying here. If you a LO, at a 5.4% gross yield, hold for completion. If you are willing to hold unlisted scrip,...

David Blennerhassett

L'Occitane (973 HK): Underlying Fundamentals Intact

L'Occitane (973 HK)'s controlling shareholder terminates potential privatization offer, but the company's growth prospects remain strong. Take...

Steve

L'Occitane (973 HK): Operational Update Shows Strong Growth Momentum

Two major catalysts: 1. According to public news, Blackstone considers bid for L'Occitane - reported by all major news channels. 2. Major...

Steve

L'Occitane (973.HK) - The Privatization Is About to Succeed

The Offeror has received valid acceptances that would result in Offeror holding no less than 90% of the Disinterested Shares (91.97% of Total...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

L'Occitane (973 HK): Who Owns What, And When

L'Occitane announces the share alternative - 10 Rollover Shares for each Offer Share. Maximum L'Occitane shares to be rolled over is 737.431mn (5%...

David Blennerhassett

L'Occitane (973 HK): The Rollover Option, And Alternate Listing Valuations

If you are an arbitrageur, I'd be buying here. If you a LO, at a 5.4% gross yield, hold for completion. If you are willing to hold unlisted scrip,...

David Blennerhassett

L'Occitane (973 HK): Underlying Fundamentals Intact

​L'Occitane (973 HK)'s controlling shareholder terminates potential privatization offer, but the company's growth prospects remain strong. Take...

Steve

L'Occitane (973 HK): Operational Update Shows Strong Growth Momentum

Two major catalysts: 1. According to public news, Blackstone considers bid for L'Occitane - reported by all major news channels. 2. Major...

Steve

L'Occitane (973.HK) - The Privatization Is About to Succeed

The Offeror has received valid acceptances that would result in Offeror holding no less than 90% of the Disinterested Shares (91.97% of Total...

Xinyao (Criss) Wang

L'Occitane (973 HK)'s controlling shareholder terminates potential privatization offer, but the company's growth prospects remain strong. Take...