Sweden’s SCA Group has decided to bid 8,6 billion Hong Kong dollars for the Chinese tissue company Vinda. The offer is made in effort to acquire all the shares on the Chinese company, SCA said in a press release.
SCA became a part owner in the tissue manufacturer Vinda in 2007 and currently has a 21.7% holding in the company with two representatives on its Board of Directors. Vinda is the third largest tissue company in China, which represents the world’s second largest tissue market. In 2012, Vinda’s sales rose 26% and amounted to approximately SEK 5bn. The company’s operating margin was 12.9%.
“Vinda is a strong player in the Chinese tissue market and has demonstrated healthy growth and profitability. As a majority shareholder, we would see the potential to further strengthen the company to ensure its future competitiveness,” says Jan Johansson, President and CEO of SCA.
The complete prospectus for the offer is expected to be presented not later than September 30, which is the date on which the acceptance period will also commence. The transaction is expected to be finalized in the fourth quarter of this year and SCA will thereafter consolidate Vinda in its accounts.
Further information here.