SCA has decided to make a public cash offer for the Chinese tissue company Vinda. The offer is conditional upon SCA achieving an ownership share in Vinda in excess of 50%. SCA is currently the second largest shareholder in Vinda, which is listed on the Hong Kong Exchange.
The offer will be Hong Kong Dollar (HKD) 11.00 per share, corresponding to a premium of approximately 34.5%, based on the average closing price over the past 30 trading days. The offer corresponds to a market capitalization of approximately SEK 9.4bn for all shares in Vinda. 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%.
