SCA shares hit record high on report of €20.8bn bid
Two firms bid for hygiene business
SCA is the world’s largest maker of incontinence pads and the second-largest in consumer tissues such as napkins and toilet paper.
Shares of Sweden’s SCA touched a record high on Thursday on a media report that a group of private equity firms had bid 200 billion crowns (€20.8 billion) for its hygiene products arm, a top global producer of diapers and toilet paper.
Swedish daily Dagens Nyheter, citing unnamed sources, said at least two international private equity firms had jointly bid for the hygiene business a few weeks ago. It did not name the bidders.
Last week, SCA formally approved a proposal to spin off its hygiene products business, to be called Essity, as a separately listed unit, leaving the forestry business under the SCA name.
SCA, the world’s largest maker of incontinence pads and the second-largest in consumer tissues such as napkins and toilet paper, declined to comment on the bid report.
The hygiene business accounts for the bulk of SCA’s value.
The report did not say whether the 200 billion crown figure represents the suitors’ basic valuation or total enterprise value, which also includes debt. – Reuters