12.08.21
L’Oréal’s board of directors has unanimously approved the repurchase by L’Oréal, as part of its share buyback program, of 22.26 million of its own shares—representing 4.0% of its capital—from Nestlé.
The total price paid to Nestlé is €8.9 billion, or approximately $10.0 billion, according to L’Oréal.
“This transaction with Nestlé is in the interest of the company and all of its shareholders. It constitutes a new strategic milestone in reinforcing the shareholder stability of L’Oréal around the Bettencourt Meyers founding family and Nestlé,” said Jean-Paul Agon, chairman of the board of directors of L’Oréal.
The board members related to Nestlé and to the Bettencourt Meyers family did not participate in the votes, the company announced yesterday when the transaction was announced.
All the shares repurchased by L’Oréal will be exclusively purchased for cancellation purposes and will be cancelled, at the latest on August 29, 2022. At the end of the transaction and after cancellation of the repurchased shares, Nestlé’s stake in the capital of L’Oréal will be reduced from 23.3% to 20.1%.
All other shareholders will benefit from an accretive effect by the same proportion, including the Bettencourt Meyers family, whose stake in L’Oréal will increase from 33.3% to 34.7%.
“We are delighted to continue the development of L’Oréal with the support of the Bettencourt Meyers family and Nestlé,” said Nicolas Hieronimus, Chief Executive Officer of L’Oréal.
The share buyback operation is not subject to any condition precedent and should be finalized in the coming days, according to L'Oréal.
The total price paid to Nestlé is €8.9 billion, or approximately $10.0 billion, according to L’Oréal.
“This transaction with Nestlé is in the interest of the company and all of its shareholders. It constitutes a new strategic milestone in reinforcing the shareholder stability of L’Oréal around the Bettencourt Meyers founding family and Nestlé,” said Jean-Paul Agon, chairman of the board of directors of L’Oréal.
The board members related to Nestlé and to the Bettencourt Meyers family did not participate in the votes, the company announced yesterday when the transaction was announced.
All the shares repurchased by L’Oréal will be exclusively purchased for cancellation purposes and will be cancelled, at the latest on August 29, 2022. At the end of the transaction and after cancellation of the repurchased shares, Nestlé’s stake in the capital of L’Oréal will be reduced from 23.3% to 20.1%.
All other shareholders will benefit from an accretive effect by the same proportion, including the Bettencourt Meyers family, whose stake in L’Oréal will increase from 33.3% to 34.7%.
“We are delighted to continue the development of L’Oréal with the support of the Bettencourt Meyers family and Nestlé,” said Nicolas Hieronimus, Chief Executive Officer of L’Oréal.
The share buyback operation is not subject to any condition precedent and should be finalized in the coming days, according to L'Oréal.