Saturday, July 13

Indonesian tycoon Tanoto offers to buy tissue maker Vinda

Indonesian tycoon Sukanto Tanoto (picture) has unveiled plans to buy Vinda International Holdings Ltd. shares including those from the largest shareholders of the Hong Kong-listed tissue maker.

Sukanto’s family offers to buy Vinda shares it doesn’t already own for HK$23.5 each, representing a 13.5% premium to the last closing price, according to the exchange filing on Friday. Swedish personal care product maker Essity AB and Vinda’s founder Li Chaowang have agreed to sell their shares to the family. The two biggest shareholders own a combined 72.62% stake in Vinda.

Sukanto’s family could pay a maximum HK$26 billion ($3.3 billion) should all shareholders accept the offer.

Tanoto’s main business flagship RGE Pte has operations spanning palm oil, energy as well as pulp and paper. The Indonesian tycoon has been working on a potential offer for a controlling stake in Vinda, Bloomberg News reported in October. The daughter of Tanoto has built a 7% interest in the Hong Kong-listed firm.

Essity said in April its holding in Vinda is under strategic review. Vinda has a market value of about $3.2 billion in Hong Kong and sells tissues under brands including Tempo and Tork. It also makes products for feminine care, baby care and incontinence. – Bloomberg

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