This buyback will be financed:
The price per L’Oréal share retained for this transaction is the average of its closing prices between 11 November 2013 and 10 February 2014: €124.48.
All the shares bought back by L’Oréal will be cancelled. Following the transaction, Nestlé’s stake in L’Oréal will be reduced from 29.4% to 23.29% of the share capital and the Bettencourt Meyers family’s stake in L’Oréal will increase from 30.6% to 33.31%.
In order to reflect the change of Nestlé’s stake in L’Oréal’s governance, the number of Nestlé representatives on L’Oréal’s board of directors will be adjusted from three to two directors, and the ownership ceiling provisions of the shareholders’ agreement between Nestlé and the Bettencourt Meyers family will apply to their respective new holdings.
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The transaction is subject to customary conditions, including the prior consultation of Galderma’s and L’Oréal’s works councils and the clearance of relevant antitrust authorities. It is expected to close before the end of the first semester of 2014.
“With this proposed acquisition of 50% of Galderma, Nestlé will pursue its strategic development in nutrition, health and wellness by expanding its activities to medical skin treatments,” said Peter Brabeck-Letmathe, chairman of Nestlé.
Source: Nestlé
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