Essity makes takeover bid for Asaleo Care

Essity has made a nonbinding indicative proposal to the board of Asaleo Care Limited for the acquisition of additional shares.

Essity has proposed a share offer of A$1.26 per share for the remaining 63.8 per cent of Asaleo. Essity is the largest shareholder of Asaleo, currently holding 36.2 per cent of the shares.

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) has been formed to consider the proposal, including obtaining advice from its financial and legal advisers.

Luminis Partners has been appointed as the company’s financial adviser and King & Wood Mallesons has been appointed as its legal adviser.

Meanwhile, shareholders are advised to take no action in relation to Essity’s proposal.

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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