Swedish Giant Eyes Mop Up Of Asaleo Care

By Glenn Dyer | More Articles by Glenn Dyer

While Link rejects bids left right and centre, another takeover situation might be resolved far more quickly – the mop up all cash offer for Asaleo Care’ from its 36% shareholder, Essity Aktiebolag.

Media report say Essity lobbed a non-binding proposal to acquire additional shares in the nappy, tissue, tampon and pad maker at $1.26 each – a 26% premium to the company’s last closing price of $1.01.

That saw Asaleo Care confirm that speculation that potential bidders by pausing trading and then calling for a trading halt at 12.30pm

Asaleo – which owners the Purex, Libra and Sorbent brands – requested that the trading halt remain in place until the earlier of the opening of trading on Friday.

Talks between the two companies will attempt to get mooted offer on a firmer footing by start of trading Friday.

Essity said 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.

The proposal is not subject to financing conditions. Essity will finance its acquisition of shares through its own sources.

Asaleo shares were last 21.7% higher at $1.23 – a 29-month high – before it paused trading at 11.30am. The shares are up 16% year to date thanks to the mooted offer.

They received a modest boost from the pandemic driven consumer hoarding of tissues, toilet paper and feminine products during the widespread lockdowns from February through mid year.


About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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