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Asia Pulp & Paper Co. and RGE Pte. compete for Vinda International shares

Preliminary bids and intense competition mark bidding for stake in $3 billion company

Asia Pulp & Paper Co, submitted a preliminary proposal to acquire a significant stake in Vinda International Holdings Ltd. The company is in talks to raise financing and has offered to buy a stake in Vinda at more than $20 Hong Kong per share, according to undisclosed sources.

The company, one of the world’s largest pulp producers, also sells tissue products in China, faces competition from RGE Pte, owned by Indonesian businessman Sukanto Tanoto. RGE is considering a bid for a majority stake in Vinda, seeking an edge over the 7% acquisition by the founder’s daughter in recent weeks.

Both Asia Pulp & Paper Co (APP) and RGE Pte are vying to acquire shares of the principal owner of Vinda, a company valued at close to $3 billion in Hong Kong. Vinda, known for brands such as Tempo and Tork, has seen a 3.8% rise in its shares marking the biggest gain in more than two weeks.

Interest in Essity’s stake has also attracted initial attention from Brazil’s Suzano SA, and buyout firms such as Bain Capital, CVC Capital Partners and DCP Capital. However, there is no certainty that any of the parties, including APP and RGE, will proceed with binding offers. In addition, any new major shareholder will have to work closely with Vinda’s founder, Li Chaowang, who owns about 21% of the company.

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