Vinda Jumps Most in Six Years on Svenska Buyout Offer

Vinda International Holdings Ltd. (3331) gained the most in more than six years in Hong Kong trading after receiving an offer from a unit of Europe’s largest paper-tissue maker.

Vinda jumped as much as 38 percent to HK$10.96, headed for the biggest gain since July 2007, before trading at HK$10.78 as of the mid-day break in Hong Kong.

Sweden’s Svenska Cellulosa AB (SCAB), the maker of Tempo tissues, is offering to buy all outstanding Vinda stock in cash for HK$11 a share, about 38.4 percent higher than the Chinese company’s last traded price before the announcement.

SCA, also Europe’s biggest private forest owner, is seeking acquisitions globally and has as much as 9 billion kronor ($1.4 billion) to spend on purchases, Chief Executive Officer Jan Johansson said in January. The Stockholm-based company already owns 21.68 percent of Vinda, it said in a joint statement to the Hong Kong stock exchange.

“SCA believes that Vinda is well positioned for growth within the tissue market in” China, the company said in a statement. “Becoming a majority shareholder is also an important step that will allow SCA to explore potential opportunities to create value in Vinda by sharing or entering licensing arrangements with Vinda,” it said.

JPMorgan Chase & Co., the sole financial adviser to SCA on the deal, has granted the Swedish company a credit facility in the amount of $1.1 billion, SCA said.

To contact the reporter on this story: Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net

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