STOCKHOLM - Hygiene and health company Essity has completed the divestment of its entire holding of 51.59% of shares in the Asian hygiene company Vinda International to Isola Castle, a subsidiary of Asia Pacific Resources International.
Following the HKD 14.6 billion (approximately SEK 19 billion) deal, Essity will retain a presence in Asia and in Vinda through the continued licensing of its brands.
Confirming the deal Magnus Groth, president and CEO for Essity, said: “Essity is now in better shape than ever.
“Following the divestment of Vinda the categories with the highest margins and lowest capital intensity account for a larger part of the company. The company’s pulp consumption has halved, and we have a more attractive portfolio with higher profitability and lower volatility.
“The transaction reduced Consumer Tissue’s share of net sales in 2023 from 41% to 33%. We look forward to continuing to grow a portfolio of more value-generating categories.”
Essity’s ownership of 51.59% in Vinda had been consolidated to 100% by Essity since 2014. As of the fourth quarter of 2023, Essity has classified Vinda’s financial reporting as discontinued operations.
Vinda is listed on the Hong Kong Stock Exchange and had a market capitalisation of approximately HKD 25 billion (SEK 33 billion) at the end of trading on December 14, 2023. 83% of Vinda’s net sales were related to tissue and 17% to personal care products.
