Stockholm, Sweden 09 September 2014 -- SCA's, a leading global hygiene and forest products company, and the majority shareholder in China's third-largest tissue company, Vinda International Holdings Limited ("Vinda"), agreement with Vinda to transfer its hygiene business in China (Mainland China, Hong Kong and Macau) has today been approved by the independent shareholders of Vinda.
Vinda is listed on the Hong Kong Stock Exchange, and the agreement which strengthens the cooperation between SCA and Vinda (announced July 18, 2014) was subject to approval by the independent shareholders of Vinda.
The transaction is expected to close on October 1, 2014. As of the closing date, Vinda will have the exclusive license to market and sell the SCA brands; TENA, (incontinence products) Tork (Away from Home tissue), Tempo (consumer tissue), Libero (baby diapers), and Libresse (feminine care) in China (Mainland China,Hong Kong and Macau). In these markets, Vinda will hold the rights to these brands and acquire SCA's Dr P and Sealer brands, while SCA will continue to provide innovation and technical support for the business.
- The approved cooperation and transaction will generate mutual benefits for both SCA and Vinda particularly in distribution, sales, innovation and R&D. Vinda will get access to a broader product portfolio and SCA's brands will have the potential to reach a broader base of consumers and customers via the extensive and robust distribution network of Vinda in China, says Jan Johansson, President and CEO of SCA.
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.
SCA's hygiene business in China (Mainland China, Hong Kong and Macau) had net sales of approximately SEK 600m in 2013. The purchase consideration amounts to HKD 1,144m (approx. SEK 1,000m) on a debt-free basis.