SCA offers US$1.4 bil. for China's Vinda tissue maker
AFPSTOCKHOLM--Sweden's SCA hygiene and forest products group announced Monday a public cash offer for Vinda that values the Chinese maker of tissues at 9.4 billion kronor (US$1.4 billion).
September 10, 2013, 12:04 am TWN
SCA, which is the second-largest shareholder in Hong Kong-listed, Vinda with a 21.7-percent stake, said it was making the cash offer of HK$11.00 per share contingent on acquiring a majority holding.
The Swedish company said Vinda is the third-largest tissue company in China, which represents the world's second-largest tissue market.
“Vinda is a strong player in the Chinese tissue market and has demonstrated healthy growth and profitability,” SCA chief exec Jan Johansson said in a statement.
“As a majority shareholder, we would see the potential to further strengthen the company to ensure its future competitiveness,” he added.
SCA said Vinda posted sales of approximately US$750,000 and had an operating margin of 12.9 percent.
The prospectus should be presented and the offer formally launched by no later than Sept. 30, and if the offer is successful Vinda will remain listed on the Hong Kong stock exchange, added SCA.
The Swedish company began a major restructuring of its operations last year, focusing more on paper hygiene products with the purchase of the European activities of the U.S. company Georgia-Pacific, including the Lotus brand of tissues.
The Vinda offer is a continuation of its expansion into Asian markets after its recent acquisition of Taiwanese hygiene products manufacturer Everbeauty.
It sold its British packaging business DS Smith in January for approximately 1.6 billion euros.