Prime Highlights:
- The Lauder family is planning to raise around $1 billion by selling 11.3 million shares of Estée Lauder Companies.
- Even after the share sale, the family will retain 82% of the company’s voting power, keeping control over the business.
Key Facts:
- The shares are being offered at $90 to $92 each, slightly below the recent closing price of $92.88.
- The sale will help settle Leonard Lauder’s estate, covering estate taxes and other obligations.
Background:
In a significant financial move, the family of Estée Lauder Companies Inc. heir, Leonard Lauder, is set to raise approximately $1 billion through the sale of company shares, according to reports from sources familiar with the matter.
Trusts associated with Lauder’s descendants are offering 11.3 million shares of the beauty giant at a price range of $90 to $92 per share, reflecting a discount of up to 3.1% from Tuesday’s closing price of $92.88. The proposed sale represents about 4.8% of Estée Lauder’s total outstanding shares.
The sale is intended to settle Leonard Lauder’s estate after his death in June, with the money going toward paying estate taxes and other dues. Despite the sale, the Lauder family will continue to hold a dominant position, maintaining 82% of the company’s voting power.
Shares of Estée Lauder traded flat in after-hours trading in New York, but the company has shown strong performance this year, recording a 23.9% increase through Tuesday’s close.
A spokesperson for Estée Lauder declined to comment on the transaction. The statement confirmed that JPMorgan Chase & Co. is managing the offering.
Estée Lauder, which owns popular brands like MAC, Clinique, and Bobbi Brown, remains a top player in skincare, makeup, fragrance, and hair care. Even with the share sale, the company’s strong market performance shows investors still have confidence in its future.
