Suzano confirms contact with Chinese tissue manufacturer
Company would be one of those interested in the purchase of 51.59% of Vinda International Holding
In a relevant fact disclosed to the market on Tuesday, 8th, Suzano commented on the rumors about the possibility of purchasing 51.59% of Vinda International Holdings, the leading manufacturer and distributor of household paper in China, which is the target of a sale.
The comment came from questions from the Securities and Exchange Commission (CVM) about news published about a potential offer by Suzano for Vinda.
Recently, the international press published that among those interested in Vinda’s assets are Suzano, Bain Capital, CVC Capital Partners and DCP Capital.
“The company constantly evaluates opportunities that can generate value for its shareholders and for its business and, in this sense, it had contact with information and people involved with the company Vinda International Holdings, without any binding document or that generates any obligation or commitment to the company,” the company said in a statement.
However, Suzano stressed that there is no fact or event to be disclosed at this time. “If an agreement or contract is signed involving the subject, the company will disclose it to the market, under the terms of the applicable legislation”, he concluded.
Vinda, a Hong Kong-listed tissue paper company, operates in the incontinence, feminine pads, baby products and professional use segments. The company has 13 production bases, including ten in China, Suzano’s main pulp market.
The company has an equivalent market value of $2.73 billion, according to data from Refinitiv.
PRESIDENT COMMENTS ON RUMORS
Backstage at the 18th Latin American Conference of Fastmarkets Forest Products, when questioned about a potential offer for the control of Vinda, the president of Suzano, Walter Schalka, reiterated that he would not comment on M&A transactions.
“What I can say is that Suzano’s philosophy is one of capital and financial allocation discipline,” he said, adding that all transactions signed by the company, including the purchase of Fibria, brought growth with value creation.
“We are in the middle of the Cerrado Project, less than 12 months from the beginning of operations. We are not going to make any operation that puts our financial structure at risk”, he commented. “Having these characteristics, we are always looking at capital allocation opportunities”.
According to Schalka, it is not in the company’s plans to “grow for the sake of growing”. “Where to grow, we are very agnostic. We want it to scale and be competitive [the asset].”
