Tue, Sep 10, 2013 - Page 15 News List

SCA makes offer for China’s Vinda tissue producer

AFP, STOCKHOLM

Sweden’s Svenska Cellulosa Aktiebolaget (SCA) hygiene and forest products group yesterday announced a public cash offer for Vinda International Holdings Ltd (維達) that values the Chinese maker of tissues at 9.4 billion kronor (US$1.4 billion).

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, the maker of Tempo tissues, 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 executive 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.”

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, SCA added.

SCA, also Europe’s biggest private forest owner, is seeking acquisitions globally and has as much as 9 billion kronor to spend on purchases, Johansson said in January.

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 US company Georgia-Pacific.

The Vinda offer is a continuation of its expansion into Asian markets after its recent acquisition of Taiwanese hygiene products manufacturer Everbeauty Corp (全日美實業).

Additional reporting by Bloomberg

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