LCCTF - L'Occitane International: All Eyes On Privatization Offer
2024-06-10 14:49:30 ET
Summary
- The HK$34 per share privatization offer price for L'Occitane is +3.8% above its last traded stock price.
- Shareholders have the option to accept a "Potential Alternative Share Offer" which might offer greater upside in the scenario that the company is subsequently listed elsewhere at a higher P/E.
- I assign a Buy rating to L'Occitane after assessing the potential privatization offer.
Elevator Pitch
L'Occitane International S.A. ( OTCPK:LCCTF ) [973:HK] is rated as a Buy. There is an arbitrage opportunity associated with the recent privatization offer, as the offer price is +3.8% above the company's last closing share price. Also, shareholders have the choice of accepting a "Potential Alternative Share Offer" which could possibly translate into greater upside, assuming that the Offeror goes ahead with this option and eventually lists L'Occitane on another stock exchange....
L'Occitane International: All Eyes On Privatization Offer