Vinda aims for larger market shares with multi-brand strategy

(18 July 2014 – Hong Kong) Vinda International Holdings Limited (“Vinda International” or the “Company”, which together with its subsidiaries is referred to as the “Group”; stock code: 3331), a leading manufacturer and branded seller of household paper products in China, is pleased to announce that the Group and its largest shareholder Svenska Cellulosa Aktiebolaget (“SCA”), a leading global company of hygiene and forest products, have signed agreements to cooperate on integration of their hygiene business in Mainland China, Hong Kong and Macau. 

According to the sale and purchase agreement, Vinda Group will acquire SCA’s commercial operations in Mainland China, Hong Kong and Macau for a cash consideration of approximately HK$1.14 billion. 

In additional, upon completion of the sale and purchase agreement, Vinda Group will obtain the perpetual and exclusive right to use SCA brand Tempo, in Mainland China, Hong Kong and Macau on a royalty-free basis. Vinda Group will also acquire the trademarks of Dr. P and Sealer in Mainland China, Hong Kong and Macau, and obtain the exclusive rights to use the SCA global brands Tork, TENA, Libresse and Libero in Mainland China, Hong Kong and Macau. Vinda Group will lead and responsible for the business initiatives for such brands in Mainland China, Hong Kong and Macau, while SCA will continue to provide innovation and technical support for the business. 

Upon the completion of the proposed transaction, Vinda Group will become a leading, full-fledged and multi-brand company offering quality hygiene products operating a series of renowned hygiene brands under four business segments, namely household care, baby care, feminine care and elderly care. It is expected that the Group will be able to gain larger market shares by managing brands with different positioning and market segmentation strategies.

Chief Executive Officer of Vinda International, Ms. Donna Zhang said, “Vinda Group is committed to extending the product range by implementing a multi-brand strategy as we see bright prospects for China’s hygiene industry. Leveraging the strengths of both Vinda and SCA, we are confident that the new business integration would enable Vinda Group to gain larger market shares for the hygiene product segments, and thus generate greater revenue and profits for Vinda, SCA and the shareholders in return. Looking ahead, Vinda Group will continue to raise the standards of household hygiene by providing quality household paper and develop itself into an enterprise with presence in international markets. 

The agreements are subject to the approval by the Company’s independent shareholders at an extraordinary generating meeting.