L’Oréal Group will repurchase 4% of the shares of its capital—held by Nestlé. Nestlé reduced its stake of 8.9 billion euros (about $10 billion) in shares.
On December 7, it is announced by official website of L’Oreal that L’Oréal Group will repurchase 4% of the shares of its capital—held by Nestlé. Nestle reduced its stake of 8.9 billion euros (about $10 billion). After the sale, Nestlé’s stake in the capital of L’Oréal will be reduced to 20.1%.
All the shares repurchased by L’Oréal will be exclusively purchased for cancellation purposes and will be canceled, at the latest on August 29, 2022. At the end of the transaction and after the cancelation 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%.
The transaction will also have an accretive effect on L’Oréal’s earnings per share of more than 4% in a full year.
Nestlé also said its board has decided to buy back 20 billion Swiss francs ($21.6 billion) worth of shares between 2022 and 2024. However, it will adjust the plan if it embarks on a major acquisition.
