SCA's divestment of its business in South East Asia, Taiwan and South Korea for integration with Vinda International Holdings Limited has been approved by the independent shareholders of Vinda.
“The transaction is expected to close on February 1, 2016 with SCA being the majority shareholder in Vinda, one of China's largest hygiene companies,” a SCA press release said.SCA's divestment of its business in South East Asia, Taiwan and South Korea for integration with Vinda International Holdings Limited has been approve#
Vinda is listed on the Hong Kong Stock Exchange and the transaction was subject to approval by the independent shareholders of Vinda.
As part of the transaction, SCA and Vinda have signed an agreement regarding the exclusive license to market and sell the SCA brands.
These include; Tena in incontinence products, Tork in away-from-home tissue, Tempo in consumer tissue, Libero in baby diapers and Libresse in feminine care in South East Asia, Taiwan and South Korea.
With this agreement, Vinda will hold the rights to these product brands in these Asian markets, while Vinda will also acquire the brands Drypers, Dr.P, Sealer, Prokids, EQ Dry and Control Plus in these markets.
“Asia is an important growth market for SCA with a large population and low penetration of hygiene products,” Magnus Groth, president and CEO of SCA said.
“The approved transaction strengthens the collaboration between SCA and Vinda and enables us to further leverage on our strengths to build a leading Asian hygiene business,” Groth added.
SCA has been a shareholder in Vinda since 2007, became its majority shareholder in late 2013, and has consolidated Vinda financials since the first quarter of 2014.
In 2014, SCA divested its hygiene business in Mainland China, Hong Kong and Macau for integration with Vinda.
SCA's hygiene business in South East Asia, Taiwan and South Korea had net sales of approximately SEK 2.2 billion in 2014.
The business has approximately 1,600 employees and three personal care production sites in Malaysia and Taiwan.
The purchase consideration amounts to HKD 2.8 billion or around SEK 3.1 billion on a debt-free basis and as a consequence of this transaction SCA's Shanghai office will stop to have operations.
“This is expected to lead to approximately SEK 90 million in restructuring costs that will be recognised as an item affecting comparability in the fourth quarter of 2015,” the company informed. (AR)
Fibre2Fashion News Desk – India
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