SCA to Buy Additional 5% Stake in Chinese Tissue Maker Vinda
April 10, 2012 - SCA said that it has decided to acquire an additional 5 percent of the shares in the Chinese tissue company Vinda, which would boost SCA's stake in the company to 22.6%.
The purchase price of the shares is about 600 MSEK.
The seller in the deal is Fu An, a company majority owned by Mr. Li, the Chairman of Vinda.
SCA noted that China is the second largest tissue market in the world, and Vinda has established strong brand recognition in the country and is the third largest player in China's household paper industry in terms of market share and production capacity. The company has eight production facilities with a total production capacity of 470,000 tons and plans to reach 1 million tons in the coming years.
"The market for tissue products in China continues to grow well and continues to consolidate with the larger players, like Vinda, growing at a significantly faster speed than the market," said Jan Johansson, SCA's President and CEO. "We intend to be among the leading players in China and we have for this reason taken the decision to increase our ownership in Vinda."
The deal is subject to approval from some of Vinda's lending banks.