Essity kicks off sale of majority stake in Asian Vinda
As of closing, the 52% stake would have a value of $1.7 billion
The multinational Essity has started the process of selling its 52% stake in Vinda International, an important hygiene company based in Hong Kong, which manufactures tissue and personal care products. Sources confirmed the situation to Reuters.
Bank of America, which advised the company on the sale, sent information to potential buyers, including several private equity funds.
According to the close of last Tuesday, the 16th, the participation would have a value of US$ 1.7 billion. According to one of the sources, the non-binding bids of the first round must be delivered by the end of June.
Interested parties are looking into possible deal structures, as an offer for Essity’s stake could trigger a buyout of the entire company, according to the sources, although they say discussions are at a very early stage.
An Essity spokesperson said the company is in the early stages of the review and has nothing further to add at this time. He declined to comment on what he called “market rumours”.
Founded in 1985, Vinda’s main business segments include tissue, sanitary napkins, and adult and baby diapers. The company has eight brands and 13 production bases, ten of them in mainland China, according to the company.