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BREAKING NEWS

Founders buy back Sweden's Oriflame after shareholders accept offer

Founders buy back Sweden's Oriflame after shareholders accept offer
FILE PHOTO: Oriflame sign is seen on the flag at company's concept store in Stockholm, Sweden May 22, 2019. Reuters/Anna Ringstro -
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Anna Ringstrom(Reuters)
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STOCKHOLM (Reuters) – Beauty products retailer Oriflame’s founding family will buy out the group after other owners representing 60.5% of shares accepted a bid during the initial acceptance period.

The af Jochnick family, which already owns 31% of Oriflame, made a 9 billion crown(764.20 million pounds) offer in May to remaining shareholders, representing a 35% premium at the time.

Walnut Bidco, a company owned by family members, said in a statement on Wednesday that all conditions for completion of the offer, which values Oriflame at 13 billion crowns, had been fulfilled and declared it unconditional.

A committee of board members not part of the af Jochnick family had earlier recommended the bid, pointing to an uncertain outlook for the company which has been facing deteriorating conditions in several key markets.

Oriflame’s makeup, skin care products, accessories and food additives are marketed by direct-selling agents in about 60 countries, under many brands of which Oriflame is the biggest.

(Reporting by Anna Ringstrom; Editing by Edmund Blair)

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