June 10, 2019 / 9:57 PM / 4 months ago

Oriflame urges shareholders to accept its founding family's offer

FILE PHOTO: Oriflame sign is seen on the flag at company's concept store in Stockholm, Sweden May 22, 2019. Reuters/Anna Ringstrom

(Reuters) - Oriflame Holding AG’s Independent Bid Committee urged the company’s shareholders on Monday to accept an offer from the Swedish beauty products company’s founding family.

However, the special Committee said in a statement that it does not consider the full intrinsic value of Oriflame to be reflected in the offer made by Walnut Bidco, a new company owned by members of the af Jochnick family.

Oriflame said the Committee is not confident the current negative growth trend will turn positive in the near future and that it may take time for the company to reach its long-term financial targets.

Last month, the founders of Oriflame approached the makeup and skin care company with an offer that would value it at 12.9 billion Swedish crowns ($1.37 billion).

The founding family, which owns 30.8% of Oriflame, had said earlier that the company “needs to undertake a repositioning in key geographies, and that achieving this repositioning has challenges in the public market.”

Reporting by Maria Ponnezhath in Bengaluru; Editing by Matthew Lewis

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