STOCKHOLM - Health and hygiene company Essity has received an offer from Isola Castle, a subsidiary of pulp and paper giant, Asia Pacific Resources International, for its Vinda International business.
Essity initiated a strategic review of its 51.59% ownership of Vinda in April 2023. Isola has now made a pre-conditional public offer to the company's shareholders to acquire 100% of the shares for a price per share of HK$23.50. Essity said it supported the offer and has signed a binding undertaking to accept the offer in respect of all of its 51.59% shareholding in Vinda.
The price in the public offer will correspond to an equity value of Vinda of approximately HK$28.3 billion (SEK 37.3b).
An exclusive license to continue to market and sell certain Essity branded products will be offered to Vinda after closing of the transaction to replace the existing license agreement.
“This is a very attractive offer for Essity and for our shareholders," said Magnus Groth, president and CEO of Essity. "We maintain a presence in Asia and in Vinda through continued licensing of Essity's brands, with sustainability requirements for sourcing, production and collaboration in innovation and marketing.
"After completion of the bid, we will also reduce Consumer Tissue's share of Essity's total sales and enable increased focus on investments and growth in Essity's brands and higher yielding categories."
Vinda is listed on the Hong Kong Stock Exchange and had a market capitalisation of approximately HK$25 billion (SEK 33b) at the end of trading on December 14, 2023.
Vinda’s net sales in 2022 amounted to approximately SEK 25.1 billion and EBITA amounted to approximately SEK 1.1 billion. Of Vinda’s net sales, 83% were related to tissue and 17% were related to personal care.
