The family of Estée Lauder Companies Inc. heir Leonard Lauder is seeking to raise about $1 billion in a sale of shares in the beauty products maker, according to people familiar with the matter.
Trusts affiliated with the descendants of Lauder, who died on June 14, are offering 11.3 million shares for $90 to $92 each, said the people, who asked not to be identified because the information is private. The pricing comes at a discount of as much as 3.1 percent to Tuesdayâs closing price of $92.88.
The stake represents about 4.8 percent of the companyâs outstanding shares. A representative for Estée Lauder didnât immediately respond to a request for comment.
The beauty firmâs shares traded flat as of 5:39 p.m. in after-hours trading in New York. They have risen 23.9 percent this year through Tuesdayâs close.
Proceeds of the share sale will help settle Leonard Lauderâs estate, including paying estate tax and other obligations, according to a statement earlier. Members of Lauderâs family will beneficially own 82 percent of the outstanding voting power of the companyâs common stock.
JPMorgan Chase & Co. is working on the offering, the statement shows.
By Anthony Hughes
Learn more:
Estée Lauder Is Growing Again. Now Comes the Hard Part.
The US giant handily beat expectations and its own guidance in its latest earnings, but softness in the US and its hair and makeup businesses show it canât take its foot off the gas yet.
