Oriflame aligns legal structure with ongoing operational changes
Following ongoing changes in order to improve operational efficiencies, Oriflame intends to align its legal structure with the Group operations. These modifications may lead to change of domicile from Luxembourg to Switzerland within the next few years.
In recent years, Oriflame has gradually improved operational efficiencies through the implementation of Global Shared Services in the areas of IT, Finance and HR as well as e-Commerce, cash pooling initiatives and inventory risk management. As part of this, Oriflame has moved activities, risks, management and functions to Switzerland.
As a consequence of these operational changes, the Board of Oriflame Cosmetics S.A. has decided to pursue a process to modify the legal structure of the Group which may lead to change of domicile from Luxembourg to Switzerland within the next few years. The operational and legal restructuring is not expected to have an impact on Oriflame’s tax rate. If and when a change of domicile takes place, relevant consequences for Oriflame’s stakeholders will be considered.
The changes to the legal structure will be implemented in several steps and as part of this process the shareholders will be asked to approve a transfer of assets and liabilities from the top holding company Oriflame Cosmetics S.A. to a newly established Luxembourg financing and holding company directly held by Oriflame Cosmetics S.A. Such approval will be sought at a separate Extraordinary General Meeting (EGM) which is estimated to be held during the fourth quarter 2013. A notice to the EGM with further details will be published at least 30 days in advance of such EGM.
For additional information, please contact:
Gabriel Bennet, CFO +41 26 425 8721
Anders Ågren, VP Investor Relations +46 765 422 353