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L’Oréal and Magic Holdings International Limited have issued a “joint announcement” regarding L’Oréal’s proposal to acquire all of the shares of Magic Holdings International Limited, a company listed in the Hong Kong Stock Exchange. The proposed price is 6,30 HK dollars per share.
L’Oréal’s proposal is supported by Magic’s board of directors. Six key shareholders, representing 62.3% of the company’s equity, are already committed to supporting L’Oréal’s proposal. However, the implementation of the transaction also is subject to the approval of the Ministry of Commerce of the People’s Republic of China (MOFCOM).
A specialist in cosmetic facial masks, Magic’s turnover in 2012 was approximately €150 million (+29% v.s 2011). 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 using its advanced and applied research in its China Research & Innovation center and across the world.
L’Oréal has been committed to China since 1997. Today, L’Oréal has 3,500 employees in China, a Research and Innovation center in Shanghai, and two plants in Suzhou and Yichang.
The MG brand will deliver benefits to Chinese consumers by beautifully complementing L’Oréal’s Consumer Products Division existing portfolio of brands in China.