The hygiene and health company Essity has completed the divestment of its entire holding of 51.59% of shares in the Asian hygiene company Vinda International Holdings Limited for HKD 23.50 per share. The sales proceeds amounted to HKD 14.6 billion (approximately $1.8 billion). Essity will retain a presence in Asia and in Vinda through continued licensing of Essity’s brands.
On December 15, 2023, Essity communicated that Isola Castle Ltd, a company indirectly wholly owned by Asia Pacific Resources International Limited (APRIL), had announced that it intended to make a pre-conditional public offer to the shareholders of Vinda to acquire 100% of the company’s issued shares for HKD 23.50 per share. Essity signed an irrevocable undertaking to accept the offer in respect of all of its 51.59% shareholding.
Essity’s ownership of 51.59% in Vinda had been consolidated to 100% by Essity since 2014.
Essity has several legal opinions confirming that the divestment of the shares in Vinda does not constitute a ‘cessation of business’ under Essity's EMTN program. These opinions considered several qualitative and quantitative factors, such as the continued business with Vinda under licenses, etc. However, already the fact that Essity only owns 51.59% of the shares and sales account for 8.5% of Essity’s total sales, means that the divestment of the shares does not qualify as ‘cessation of business’.
Essity is a global, leading hygiene and health company.
