IK reduces Oriflame stake

Industri Kapital has reduced its shareholding in Oriflame to 4.5%. The Industri Kapital 1997 fund has sold 4,300,000 Swedish Depositary Receipts (SDRs) in Oriflame Cosmetics SA, corresponding to 7.2% of the total number of shares and votes in the company, to a number of Swedish and international institutional investors. The SDRs were sold for approximately SEK280 per SDR.

The Industri Kapital 1997 Fund’s ownership has now decreased from 11.8% to 4.5%.

In February Industri Kapital sold 2,500,000 SDRs in the company corresponding to 4.2% of the total number of shares and votes in the company. Those SDRs were sold at SEK235 per share.

Oriflame floated on the Stockholm Exchange’s O-List almost two years ago in March 2004. The offering was more than 10 times oversubscribed and generated a 5.8x return for Industri Kapital. This is the second time Oriflame has gone down the IPO route. Industri Kapital backed the business in 1999 in a public-to-private transaction when it delisted the company from the London Stock Exchange. Industri Kapital’s 1997 Fund paid €90m for a 39% stake in the company.