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SCA bids for Chinese tissue giant Vinda

09 Sep 2013 − 

SCA ready to pay HKD11.0 per share for each of the Vinda 782 million shares it does not already own. Vinda to remain listed on the Hong Kong Stock Exchange.

SCA is preparing to take over the Chinese tissue manufacturer Vinda International in a HKD8.6bn (€842m) deal. SCA announced it would pay HKD11.0 per share in a public cash offer for all outstanding shares in the company - a 34.5% premium to the Hong Kong company’s average closing price over the past 30 days. The acceptance period was set to begin on 30 September and was expected to be finalised in the fourth quarter this year, SCA explained in a press release on 9 September.

Vinda is reportedly the third largest tissue company in China with an installed capacity exceeding 500,000 tpy. In 2012, the company has ramped up its production capacity by 70,000 tpy and is currently working to add another 220,000 tpy to reach a total capacity of 750,000 tpy of tissue by the end of 2013.

SCA is the second largest shareholder in Vinda. The company became a part owner in Vinda in 2007 and is currently holding a 21.7% stake in the Chinese company. “The offer is conditional upon SCA achieving an ownership share in Vinda in excess of 50%,” Swedish tissue and hygiene products giant explained.

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