Indonesian tycoon Tanoto offers to buy tissue maker Vinda

INDONESIAN tycoon Sukanto Tanoto’s family has unveiled plans to buy Vinda International Holdings shares, including those from the largest shareholders of the Hong Kong-listed tissue maker.

A unit of the family’s firm RGE offered to buy Vinda shares it does not already own for HK$23.50 each, representing a 13.5 per cent premium to the last closing price, according to an exchange filing on Friday (Dec 15).

Swedish personal care product maker Essity and Vinda founder Li Chaowang have agreed to sell their shares. The two biggest shareholders own a combined 72.62 per cent stake in Vinda.

The Tanoto family could pay a maximum HK$26 billion (S$4.4 billion) should all shareholders accept the offer.

“This is a very attractive offer for Essity and for our shareholders,” the company said. “We maintain a presence in Asia and in Vinda through continued licensing of Essity’s brands, with sustainability requirements for sourcing, production and collaboration in innovation and marketing.”

RGE has operations spanning palm oil, energy as well as pulp and paper. Tanoto had been working on a potential offer for a controlling stake in Vinda, Bloomberg News reported in October. His daughter has built a 7 per cent interest in the Hong Kong-listed firm.

Closely held RGE operates in Indonesia, China, Brazil, Spain and Canada, with more than 60,000 employees.

Essity said in April that its holding in Vinda was under strategic review.

Vinda has a market value of about US$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.

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The deal is subject to approval by regulatory authorities and is expected to be completed in mid-2024.