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RPT-Hygiene products group Essity offers to raise stake in Australia's Asaleo Care

Published 10/12/2020, 05:40 pm
Updated 10/12/2020, 05:42 pm
© Reuters.
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STOCKHOLM, Dec 10 (Reuters) - Swedish hygiene products group Essity ESSITYb.ST has made a non-binding indicative proposal to buy more shares in Australian hygiene company Asaleo Care Limited AHY.AX , where it is already the largest shareholder.

Essity, which currently owns 36.2% in Asaleo, said the proposal put forward to Asaleo's board was to buy stock at A$1.26 ($0.9403) per share, compared to the firm's market close of A$1.01 on Wednesday. The closing price corresponds to a market value of A$549 million.

"There can be no certainty that any agreement will be reached, that a formal binding proposal will be submitted, or that a transaction will be undertaken," Essity said in a statement on Thursday.

Essity said it will finance its acquisition of shares through own funds.

($1 = 1.3399 Australian dollars)

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