Asaleo Care has confirmed it is in engaged with ongoing discussions with the parent of its major shareholder, Essity, to acquire all the shares in the company.
The discussions follow Essity’s initial proposal announced on 10 December 2020 and Asaleo’s subsequent response to the proposal on 27 January 2021.
Asaleo Care rejected the proposal from Essity to acquire all the shares in the company last month. At the time, Asaleo Care chairman, Harry Boon, said the proposal “fundamentally undervalues Asaleo Care, is materially inadequate and does not reflect the strategic value of the company to Essity.”
Essity made a nonbinding indicative proposal to the board of Asaleo Care Limited for the acquisition of additional shares in December.
At the time, Essity, which is largest shareholder of Asaleo, currently holding 36.2 per cent of the shares, proposed a share offer of A$1.26 per share for the remaining 63.8 per cent of Asaleo.
The Essity offer valued the entire company at A$684.3 million ($512.47 million), based on the closing market price A$1.01 on 9 December 2020.
A board committee consisting of the independent directors of Asaleo (excluding the Essity nominated directors) was formed to consider the proposal, including obtaining advice from its financial and legal advisers.
In a statement issued on Monday, Asaleo Care said shareholders do not need to take any action. The company stated it would provide a further update with its results announcement on 17 February 2021.
Asaleo Care’s portfolio of brands includes Libra, TENA, Tork, Treasures, Viti and Orchid. The Purex, Sorbent, Handee Ultra and Deeko brands are not owned in Australia.
The company has 15 manufacturing and distribution facilities throughout Australia, New Zealand, and the Pacific Islands.
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