L'Oréal announces the approval by the MOFCOM to proceed with the acquisition of Magic Holdings in China
L’Oréal and Magic Holdings International Limited, a company listed on the Hong Kong Stock Exchange, issued earlier today a “joint announcement” confirming the approval by the Ministry of Commerce of the People’s Republic of China (MOFCOM*) to proceed with the implementation of the acquisition of Magic by L’Oréal.
L’Oréal and Magic have also confirmed that the other pre-conditions to the implementation of the transaction have been satisfied. The transaction is proposed to be implemented as a scheme of arrangement. A scheme document, providing further information about the transaction, will be dispatched to shareholders of Magic in due course. We expect the transaction to close during the second quarter of 2014.
A specialist in cosmetics facial masks, Magic’s turnover in fiscal year 2012-2013 was approximately 160 million euros (+25% in Hong Kong dollars vs. previous fiscal year). Facial masks are one of China’s beauty market’s fastest growing areas with very promising development prospects. Magic’s MG brand is one of China’s leading brands in this category.
Relying on Magic’s highly talented management and teams, L’Oréal intends to develop this Chinese brand by contributing its science based expertise, and leveraging its advanced and applied research in China and across the world.
The MG brand would beautifully complement L’Oréal’s Consumer Products Division in China, spearheaded by two worldwide leading brands: L’Oréal Paris, No. 1 beauty brand both in the world and in China, and Maybelline New York, No. 1 make-up brand in the world and in China as well. By adding a major Chinese brand with a unique expertise to its portfolio, the Consumer Products Division will be able to further accelerate its conquest of new consumers in the strategic Chinese market.
* Ministry of Commerce of the People’s Republic of China
About L’Oréal ChinaL’Oréal has been committed to China since 1997. Today, L’Oréal has more than 3 500 employees in China, a Research & Innovation center in Shanghai and two plants in Suzhou and Yichang. After 17 years of rapid, solid and sustained development, L’Oréal has successfully established itself as a leader in the Chinese beauty market. L’Oréal is No. 1 in skincare, make-up, men’s skincare, professional products, luxury beauty and dermo-cosmetics markets.
About L’OréalL'Oréal, the world's leading beauty company, has devoted itself to all forms of beauty worldwide for over 100 years and has built an unrivalled portfolio of 28 international, diverse and complementary brands. With sales of 22.5 billion euros in 2012, L'Oréal employs 72,600 people worldwide. In 2013, the Ethisphere Institute, a leading international think-tank for business ethics, corporate social responsibility and sustainability, recognized L'Oréal as one of the World's Most Ethical Companies. This is the fourth time that L'Oréal has received this distinction. www.loreal.com
Important information about the proposal to acquire Magic Holdings International Limited by way of a scheme of arrangement.
This news release is not intended to and does not constitute, or form part of, any offer to sell or subscribe for or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the transaction or otherwise, nor shall there be any sale, issuance or transfer of securities of Magic in any jurisdiction in contravention of applicable law. The transaction will be made solely through the scheme document, which will contain the full terms and conditions of the transaction, including details of how to vote in favour of the transaction. Any acceptance or other response to the transaction should be made only on the basis of information in the scheme document or any other document by which the transaction is made.
Contacts at L'Oréal
Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel.: +33 1 47 56 83 02
[email protected]
Financial analysts and institutional investors
Mrs Françoise LAUVIN
Tel.: +33 1 47 56 86 82
[email protected]
Journalists
Mrs Stephanie CARSON-PARKER
Tel.: +33 1 47 56 76 71
[email protected]
Switchboard
Tel.: +33 1 47 56 70 00
For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, and the Internet site for shareholders and investors, www.loreal-finance.com, or call +33 1 40 14 80 50.