SCA Increases Ownership in Vinda
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SCA, Stockholm, Sweden, this week said it has decided to acquire an additional 5% of the shares in Chinese tissue company Vinda. The purchase price is around 600 MSEK. The seller in the transaction is Fu An, a company majority owned by the chairman of Vinda. SCA's share in Vinda after the transaction will be 22.6%.
Vinda is the second largest tissue market in the world. Currently the company is the third largest player in the China household paper industry in terms of market share and production capacity. Vinda has eight production facilities with a total production capacity of 470,000 metric tpy and targeting to reach 1 million metric tpy in the near future.
"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. 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," said Jan Johansson, SCA's president and CEO.
The transaction is subject to receiving consent from some of Vinda's lending banks.
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