Swedish paper and hygiene product maker SCA Group Holding BV said it would buy the remaining shares in Hong Hong-listed tissue maker Vinda International Holdings for HK$8.65 billion (US$1.12 billion) to strengthen its position in the Chinese tissue market.
“Becoming a majority shareholder is an important step to allow SCA to explore potential opportunities to create value such as sharing or entering into licensing arrangements with Vinda,” according to joint statement to the Hong Kong Stock Exchange.
SCA already owns 21.68 percent of Vinda, and it offered to pay HK$11 per share for the remaining stakes in Vinda, about 35 percent higher than the average closing price in the past 30 days.
The Swedish company would also help Vinda promote “Away from Home” tissue markets, which are less-developed in China’s mainland.
SCA said it intends to keep the listing status of Vinda and the latter will operate as a subsidiary of SCA after the completion of the deal.
Vinda surged 37 percent to HK$10.88 after it resumed trading since suspension from September 2.
Source: Shanghai Daily