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French cosmetics giant L'Oreal announced Thursday a $843 million bid to acquire the Hong Kong-listed facial care company Magic Holdings International.
The proposed bid of HK$6.30 per share is worth a total of HK$6.53 billion (US$843 million, 636 million euros), according to a joint statement by the companies released on the Hong Kong stock exchange.
The offer represents a premium of nearly 25 percent over the closing price of HK$5.05 on the last trading day before the announcement, it added.
"L'Oreal's proposal is supported by Magic's Board of Directors," the French company said in a separate statement.
"Six key shareholders, representing 62.3 percent of the company's equity, are already committed to supporting L'Oreal's proposal," it added.
The approval of China's commerce ministry is required for the transaction.
L'Oreal said Magic's MG brand is one of the leaders in China's fast-growing cosmetic facial mask market, adding that it intends to aid MG's further development with its scientific expertise.
Present in China since 1997, L'Oreal has 3,500 employees in the country where it operates two plants and a research centre.