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Transforming into a Leading Hygiene Company in Asia with
a Stronger Presence in Asia Market and a More Diversified Product Offering
(29October2015 – Hong Kong) Vinda International Holdings Limited (“Vinda International” or the “Group”; stock code: 3331) is pleased to announce that Vinda International and SCA Group (“SCA”)signed an agreement that Vinda International will integrate SCA’s hygiene business in South East Asia, Taiwan and South Korea into the Group at a consideration of HK$2.8 billion, settled by cash and shares, on a debt-free basis.
The net sales of the integrated business was approximately SEK 2.2 billion (equivalent to c.HK$2.3 billion) in 2014. The integration will allow Vinda International to further extend its presence to Asia including Malaysia, Taiwan, South Korea, Singapore, Thailand, Philippines, Indonesia, Vietnam, Cambodia, Myanmar, Laos, East Timor and Brunei.
With this agreement, Vinda International shall also be granted perpetual and exclusive licenses to use a number of SCA’s well-known brands across Asia, including Tempo, TENA, Tork, Libresse and Libero, while Vinda International will own the reputable regional trademarks such as Dr.P, Sealer, Drypers, Prokids, EQ Dryand Control Plus in these countries.
Mr. Li Chao Wang, Chairman of the Group said: “Going international and transforming into a leading hygiene company in Asia are at the heart of our 7th-Five Year Plan. Asia is a market with tremendous growth opportunities for tissue and personal care. While SCA has a well-established presence across incontinence, feminine and baby categories in Asia, Vinda is an expert in the tissue category in China. This integration, therefore, not only immediately enhances Vinda International’s enterprise value, but also enables us to fully leverage the best of strengths of both companies for geographical expansion, category expansion, brand development and improvement of operation efficiencies.”
Separately, the Group signed an agreement with Fu An, a substantial shareholder of the Group, to acquire its production base and assets in Sanjiang, Guangdong Province, at a consideration of HK$976 million, settled by cash and shares, on a debt-free basis. Such a strategic move will allow the Group to secure its asset base and reduce its rental expenses.
These two agreements are subject to the approval by the Company’s independent shareholders at an extraordinary general meeting.
About Vinda International Holdings Limited
Vinda International is a branded seller and leading manufacturer of hygiene products focusing in mainland China, Hong Kong and Macau. The Group manages four business segments, namely household paper (“Tissue”), incontinence care, feminine care and baby care under the brands Vinda, Tempo, Tork, TENA, Dr. P, Libresse, VIA, Libero, Babyfit and Sealer.
About SCA Group
SCA Group is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands. SCA was founded in 1929, has its headquarters in Stockholm, Sweden, and is listed on NASDAQ OMX Stockholm.
SCA has been a shareholder in Vinda International since 2007 and became its majority shareholder in late 2013.