PARIS – L’Oréal has agreed to sell about 29.6 million Sanofi shares to Sanofi for approximately 3 billion euros.
The transaction is to be priced at 101.50 euros per share, the French beauty giant said in a statement Monday morning. Following the transaction’s completion and cancellation of the repurchased shares, L’Oréal will own 7.2 percent of Sanofi’s share capital and 13.1 percent of its voting rights.
“L’Oréal remains an important shareholder of Sanofi and is fully supportive of the company’s value creation strategy,” said L’Oréal. “The transaction will optimize L’Oréal’s balance sheet, notably following its recent acquisitions, and further diversify the group’s financing sources.”
Among L’Oréal’s recent investments was its taking a 10 percent stake in dermatology giant Galderma in early August 2024.
The transaction is to be made through an off-market block trade and is expected to be finalized in coming days.
“Consistent with the trusted relationship that L’Oréal and Sanofi have built over more than 50 years, we will continue to support the development of Sanofi as a loyal and key shareholder and are confident in the prospects of the company,” said Christophe Babule, chief financial officer of L’Oréal.
Sanofi said the transaction is part of its share buyback program announced on Jan. 30.
“L’Oréal has been a trusted shareholder and partner for decades, playing a key role in supporting Sanofi’s growth and transformation,” said François Roger, Sanofi chief financial officer, in a separate statement.
“We are pleased to retain L’Oréal as one of our largest shareholders. This transaction highlights Sanofi’s dedication to sustainable value creation while upholding our strategic priorities and preserving the strength of our key partnerships,” he added.
