Essity has confirmed that Isola Castle – a company indirectly wholly owned by Asia Pacific Resources International (APRIL) – has made a pre-conditional offer to acquire 100% of the shares in Vinda.
Essity has since signed to accept the sale of its 51.59% shareholding in Vinda, at a price of HKD28.3bn (SEK 37.3bn).
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.
Magnus Groth, President and Chief Executive of Essity, said: “We maintain a presence in Asia and in Vinda through continued licensing of Essity’s brands, with sustainability requirements for sourcing, production and collaboration in innovation and marketing.
“After completion of the bid, we will also reduce Consumer Tissue’s share of Essity’s total sales and enable increased focus on investments and growth in Essity’s brands and higher yielding categories.”
Essity’s ownership of 51.59% in Vinda has been consolidated 100% by Essity since 2014. Vinda is listed on the Hong Kong Stock Exchange and in 2022 reported net sales of 25.1bn and EBITA of SEK1.1bn.
Of Vinda’s net sales, 83% were related to tissue and 17% were related to personal care.
As of Q4 2023, Essity now classifies the financial reporting of Vinda as discontinued operations.
Strategic review of the Consumer Tissue Private Label Europe business concluded
Essity has confirmed that the Consumer Tissue Private Label Europe business will remain a part of the Essity Group, following the conclusion of the strategic review of the division.
It said: “Essity continuously evaluates its various businesses to increase long-term value creation.
“In the strategic review of Consumer Tissue Private Label Europe it was concluded that the business as a result of the implemented divisionalisation, is a competitive and value-creating part of Essity.”
Net sales for the Consumer Tissue Private Label Europe business amounted to approximately SEK9.8bn in 2022.
The business encompasses seven production facilities in Belgium, France, Germany and Italy.
