Swedish Essity AB, the maker of Plenty paper towels, is starting a strategic review of its $1.6 billion majority stake in Hong Kong-listed tissue maker Vinda.
The Swedish personal care brand is exploring different options for its 52% holding in Vinda, it said in a statement Wednesday.
Essity is aiming to reduce the proportion of sales it gets from the consumer tissue market, the statement further added.
Essity’s B shares fell nearly 2% on Wednesday. This is the largest decline in over a month, giving the firm a market value of $20.6 billion.
Vinda, founded in 1985, owns one of China’s top tissue brands and also sells products under the Tempo and Tork brands. It also makes products for feminine care, baby care and incontinence.
Shares of Vinda dropped 11% on Thursday, which is their biggest fall since September. This happened after the firm reported a decline in net income of 88% in the first quarter.
The company has a market value of about $3 billion, valuing Essity’s stake at around $1.6 billion.
Source: yahoo.com
