L’Oreal shares opened up 1.4% Wednesday after Nestle said Tuesday it would cut its stake in the French cosmetics giant to about 20% by selling shares worth 8.9 billion euros ($10.05 billion).
Following the deal, Nestle said it would own 20.1% of L’Oreal, down from 23.3% previously. L’Oreal, meanwhile, would buy back shares representing 4% of its capital and cancel them at the latest on Aug 29.
As a result of the transaction, which is expected to close in the coming days, the Bettencourt Meyers family, will see their stake rise to 34.7% from 33.3%, but will not be required to launch a takeover offer, as normally required for passing ownership thresholds above one-third of the capital.
Read more/Source: Reuters
Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.