Isola Castle Ltd, a company indirectly wholly owned by Asia Pacific Resources International Limited (APRIL), has announced that it will make a pre-conditional public offer to the shareholders of Vinda International Holdings Limited to acquire 100% of the shares in Vinda for a price per share of HKD 23.50 ($3.01). Essity supports the offer and has signed an irrevocable undertaking to accept the offer in respect of all of its 51.59% shareholding in Vinda. The price in the public offer will correspond to an equity value of Vinda of approximately HKD 28.3 billion (SEK 37.3 billion).
The transaction is expected to generate cash proceeds to Essity of approximately HKD 15 billion (SEK 19 billion).
An exclusive license to continue to market and sell certain Essity branded products will be offered to Vinda after closing of the transaction to replace the existing license agreement.
Essity’s ownership of 51.59% in Vinda has been consolidated 100% by Essity since 2014. Vinda’s net sales in 2022 amounted to approximately SEK 25.1 billion and EBITA amounted to approximately SEK 1.1 billion. Of Vinda’s net sales, 83% were related to tissue and 17% were related to personal care.
As of Q4 2023, Essity will classify the financial reporting of Vinda as discontinued operations.
The launch of the offer and completion of the transaction are subject to approval by regulatory authorities in China and other relevant markets. The transaction is expected to be completed mid-2024.
Essity is a global, leading hygiene and health company.
