HONG KONG, Might 16 (Reuters) – Sweden’s Essity has kicked off the sale course of for its 52% stake in Hong Kong-based Vinda Worldwide (3331.HK) – a maker of tissues and diapers, two sources with data of the scenario instructed Reuters.
Financial institution of America, Essity’s adviser on the sale, has despatched info to potential patrons together with a variety of non-public fairness funds, mentioned one of many sources and a 3rd particular person with data of the matter.
The stake was price $1.7 billion as of Tuesday’s shut.
First-round non-binding bids are due by the tip of June, one of many sources mentioned.
events are potential deal buildings and a proposal for Essity’s 52% stake might set off a buyout of your complete firm, the sources mentioned, though they added that discussions are at a really early stage.
The Swedish maker of hygiene merchandise mentioned final month it has initiated a strategic assessment of its stake in Vinda because it desires to cut back its client tissue division’s share of group gross sales.
An Essity spokesperson mentioned the corporate is within the early levels of the assessment and has nothing extra so as to add at this level. He declined to touch upon what he known as “market rumours”.
Vinda didn’t instantly reply to a request for remark.
It mentioned on Saturday that it had not acquired any replace on Essity’s strategic assessment, responding to media stories that Fu An Worldwide Co Ltd, Vinda’s second-largest shareholder with a 21% stake, was in search of to purchase Essity’s holding.
All sources declined to be recognized as the knowledge was confidential. Financial institution of America declined to remark.
Based in 1985, Vinda’s core enterprise segments embrace tissues, sanitary napkins and grownup and child diapers.
It has 8 manufacturers and 13 manufacturing bases, 10 of that are in mainland China, in response to the corporate’s web site.
Vinda in 2022 accounted for 16% of Essity’s 156 billion Swedish crowns ($15.2 billion) turnover, whereas its non-public label client tissue enterprise in Europe represented 6%.
Reporting by Kane Wu; Modifying by Edwina Gibbs
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