Indonesian Tycoon Tanoto Offers To Buy Tissue Maker Vinda

In an exchange filing on Friday, a branch of the Tanoto family’s enterprise, RGE Pte, has expressed its intention to acquire outstanding shares of Vinda at HK$23.50 each, reflecting a 13.5% premium over the latest closing price. Notably, Essity AB, the Swedish personal care product manufacturer, and Vinda’s founder, Li Chaowang, have endorsed the sale of their shares to the Tanoto family. Collectively, these major stakeholders command a substantial 72.62% ownership in Vinda.

Following the announcement, Vinda’s stock experienced an upward surge of more than 8% in the Hong Kong market. The potential financial commitment from the family, contingent upon full shareholder acceptance, could reach a maximum of HK$26 billion ($3.3 billion).

In a statement, Essity expressed its satisfaction with the proposed offer, emphasizing its attractiveness for both Essity and its shareholders. The company affirmed its commitment to maintaining a presence in Asia and Vinda through ongoing brand licensing, with a focus on sustainability in sourcing, production, and collaborative efforts in innovation and marketing.

RGE, the flagship business of Tanoto, operates across various sectors, including palm oil, energy, and pulp and paper, with a global presence spanning Indonesia, China, Brazil, Spain, and Canada and employing over 60,000 individuals. Bloomberg News previously reported the Indonesian tycoon’s interest in acquiring a controlling stake in Vinda, while Tanoto’s daughter has already amassed a 7% stake in the Hong Kong-listed company.

The strategic review of Essity’s holding in Vinda, announced in April, aligns with the family’s long-standing interest in the company. Vinda, valued at approximately $3.2 billion in the Hong Kong market, specializes in tissue products under brands like Tempo and Tork, along with offerings in feminine care, baby care, and incontinence.

The proposed acquisition is contingent upon regulatory approvals and is anticipated to conclude by mid-2024.

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