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CORRECTED-UPDATE 1-Australia's Asaleo Care says takeover bid from Sweden's Essity undervalues firm

Published 10/12/2020, 09:21 pm
Updated 11/12/2020, 12:12 am
© Reuters.

(Corrects paragraph 4 to say Essity offer values co at A$684.3 mln, not A$549 mln; clarifies in paragraph 3 that trading in company's shares was halted)

Dec 10 (Reuters) - Asaleo Care Ltd AHY.AX said on Thursday a takeover bid by its largest shareholder Essity ESSITYb.ST offered a low premium to the hygiene and personal products maker's recent share prices.

Swedish group Essity's A$1.26 per share offer for the remaining 63.8% of Asaleo, which it doesn't already own, landed during market hours in Australia.

Asaleo's shares rose more than 20% and was last trading at A$1.23 before being halted.

The Essity offer valued the entire company at A$684.3 million ($512.47 million) and was at a 25% premium, based on Wednesday's close.

"The proposal ... reflects a low takeover premium to recent market prices and is highly opportunistic in timing," Asaleo said.

However, the company said it was still in early stages of assessing the proposal.

"There can be no certainty that any agreement will be reached ... or that a transaction will be undertaken," Essity said earlier on Thursday, adding that it plans to finance the deal through its own funds.

($1 = 1.3353 Australian dollars)

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