Vinda International's profitability is not ideal, and its major shareholders are no longer willing to wait patiently.
At the end of 2023, Vinda International announced that its major shareholder, Sweden's Essity, had begun discussions with several potential buyers regarding the sale of its shares in Vinda International.
Looking back to 2013, Essity acquired nearly 300 million shares of Vinda International for approximately HK$8.648 billion, thereby becoming the controlling shareholder of the company.
As a consumer paper products manufacturer ranking first in Europe and second globally, Essity owns globally renowned brands such as TENA and Tork. Through this cooperation, Vinda International was able to expand its brand portfolio and product lines, leveraging the Tempo brand to penetrate the high-end market.
Essity's controlling stake over the past decade has seen no significant share changes in recent years, with its current shareholding at approximately 51.59%.
Essity's decision to divest may be related to its own operational challenges. Financial reports show that Essity's profits have been declining over the past few years, with a drop of over 35% in 2022, and its net profit margin falling from 7.07% to 3.56%.
What is striking is that not only the major shareholder wants to sell its stake, but the founder's family has also chosen to cash out and leave.
Vinda's predecessor was a daily necessities factory located in Xinhui, Jiangmen, Guangdong. Li Chaowang became the new factory director in 1985 at the age of 27. Under his leadership, the factory turned losses into profits and gradually became an industry leader.
By 1990, Li Chaowang registered the Vinda trademark and developed small-pack tissue paper projects. Through extensive advertising, Vinda gradually became a well-known brand, and sales surged. In 2007, Vinda was listed on the Hong Kong Stock Exchange, with its share price soaring 39% on the first day, raising nearly HK$1.3 billion.
As major shareholders and founders cashed out, many potential buyers showed strong interest in taking over Vinda International. On December 15 last year, Vinda International announced that Asia Pacific Resources Group, a subsidiary of the family trust of Indonesian-Chinese tycoon Sukanto Tanoto, proposed to acquire the shares held by Essity and Li Chaowang at HK$23.50 per share. This price was 13.53% higher than Vinda International's closing price on the previous trading day, with the total transaction amount reaching HK$26.1 billion.
It is understood that Asia Pacific Resources Group is one of the world's largest pulp and paper product manufacturers and a core subsidiary of Indonesia's heavyweight conglomerate Royal Golden Eagle Group. This means that Vinda International's controlling shareholder will shift from Essity to Royal Golden Eagle Group.
Industry analysts believe that as a paper industry giant, Royal Golden Eagle Group may leverage its resource advantages to integrate operations, creating synergies for the company's future development.
Source: Changjiang Business News
Vinda International's profitability is not ideal, and its major shareholders are no longer willing to wait patiently.
At the end of 2023, Vinda International announced that its major shareholder, Sweden's Essity, had begun discussions with several potential buyers regarding the sale of its shares in Vinda International.
Looking back to 2013, Essity acquired nearly 300 million shares of Vinda International for approximately HK$8.648 billion, thereby becoming the controlling shareholder of the company.
As a consumer paper products manufacturer ranking first in Europe and second globally, Essity owns globally renowned brands such as TENA and Tork. Through this cooperation, Vinda International was able to expand its brand portfolio and product lines, leveraging the Tempo brand to penetrate the high-end market.
Essity's controlling stake over the past decade has seen no significant share changes in recent years, with its current shareholding at approximately 51.59%.
Essity's decision to divest may be related to its own operational challenges. Financial reports show that Essity's profits have been declining over the past few years, with a drop of over 35% in 2022, and its net profit margin falling from 7.07% to 3.56%.
What is striking is that not only the major shareholder wants to sell its stake, but the founder's family has also chosen to cash out and leave.
Vinda's predecessor was a daily necessities factory located in Xinhui, Jiangmen, Guangdong. Li Chaowang became the new factory director in 1985 at the age of 27. Under his leadership, the factory turned losses into profits and gradually became an industry leader.
By 1990, Li Chaowang registered the Vinda trademark and developed small-pack tissue paper projects. Through extensive advertising, Vinda gradually became a well-known brand, and sales surged. In 2007, Vinda was listed on the Hong Kong Stock Exchange, with its share price soaring 39% on the first day, raising nearly HK$1.3 billion.
As major shareholders and founders cashed out, many potential buyers showed strong interest in taking over Vinda International. On December 15 last year, Vinda International announced that Asia Pacific Resources Group, a subsidiary of the family trust of Indonesian-Chinese tycoon Sukanto Tanoto, proposed to acquire the shares held by Essity and Li Chaowang at HK$23.50 per share. This price was 13.53% higher than Vinda International's closing price on the previous trading day, with the total transaction amount reaching HK$26.1 billion.
It is understood that Asia Pacific Resources Group is one of the world's largest pulp and paper product manufacturers and a core subsidiary of Indonesia's heavyweight conglomerate Royal Golden Eagle Group. This means that Vinda International's controlling shareholder will shift from Essity to Royal Golden Eagle Group.
Industry analysts believe that as a paper industry giant, Royal Golden Eagle Group may leverage its resource advantages to integrate operations, creating synergies for the company's future development.
Source: Changjiang Business News
