Is there a warehouse withdrawal? Emergency response of over 20 billion megawatts
June 25th, 2023

Concerns have been raised over the ten-year-long indigenous paper-scarves control power of foreign holdings.

In recent days, the Swedish enterprise Essity, a holder of the Vida International Holdings, announced that consideration was being given to the sale of the VID international shares. The relevant information was then transmitted to the second largest shareholder of Vida International, and the Chairman of the Board, Li Pyongyang International, intended to buy Essity holdings.

On 14 May, Vida International did not directly deny this news in the Port Bulletin, stating that since the publication of the voluntary bulletin, the Board has not received any updated information on the Essity tactical screening.

The market value involved is over $12.7 billion?

As a well-known home-based paper-carves business, Vida International has a well-known paper brand brand name such as “Vida”, “Tempo”. The market value of this home, which amounted to T$ 24.7 billion (as of 12 May), was attributed to the indigenous paper-kives giant, and has recently attracted widespread market attention.

On 27 April, while disclosing a quarter of its performance, Vida International published a voluntary announcement on the Essity Strategic Review. The announcement revealed that the holding shareholder Essity, which created long-term value, was conducting a strategic review of hand-held stock and private brands in Europe, which could lead to the sale of some or all of the company’s equity, but no final decision was yet in place.

It is understood that Essity currently holds 621 million international shares, with a share of 51.59 per cent. This was followed by the Chairman of the Board of Directors, Li Pyongyang International, with 251 million shares and 21.72 per cent holding shares.

As a result of the disclosure of the above-mentioned bulletin, the Vida international equity price dropped significantly, at a rate of up to 13 per cent. Subsequently, relevant information was transmitted, and Li Pyongyang intended to purchase Essity’s share. The market value of the acquisition was more than $12.7 billion if it was calculated at a cost of $20.5 per unit on 12 May.

However, the declaration of clarification issued by Vida International on 14 May at Port did not directly deny it. The company merely stated that the Board had not received any updated information on the Esity strategic check since the voluntary announcement dated 26 April 2023, which referred to the acquisition of Esity shares by the FSP.

According to the information, Essity is a Swedish producer of personal care supplies, the second largest consumer paper-carves producer in Europe, with a global branding (TENA) and multiconstituency (Tork). At the end of 2022, Essity had just announced adjustments to its organizational structure and executive management team, and in the new organizational structure, companies would include four operational sectors: American consumer goods, EMEA consumer goods, professional health supplies and health and medical supplies.

or facing privatization

In-service speculation, Essity was reduced or affected by the industrial environment and intended to refocus operations. If Essity is finally sold, it would mean that Fuerza International could return to a large shareholder for a period of 10 years, and its founder, Lee Lee, would regain control.

According to information received, the Vida Group was founded in 1985 and has gradually expanded from subsistence paper operations to a variety of operations such as life paper, female care, infant care and home-based sanitation solutions. Vida International marketed in Hong Kong in 2007.

In 2013, Essity purchased nearly 300 million shares at the cost of approximately HK$ 8647.5 million through the solicitation of purchase, thus taking over the control of VID International (up from the second largest shareholder to the controlling shareholder) and maintaining the position of holding shareholders over the past decade, without any increase or decrease in recent years.

Subsequently, in July 2014, Vida International and Essity signed an agreement to integrate Essity into the business of the mainland of China, Hong Kong and Macao at a total price of $1.54 billion, and to secure the permanent and exclusive use of the Esity brand “Tempo won” in the above-mentioned region on the basis of royalties.

In a study, bearer securities also considered that the Esity decay scheme had a limited impact on the actual production of the company, and that brand authorization, including Tempo, was granted free and permanent and would not be subject to change as a result of the shareholder’s plan.

However, it needs to be noted that Fonds International currently holds 21.72 per cent of the VIOL. If the transaction is finally implemented, it would mean that FEA will hold more than seven Vida equity positions. At that time, it could trigger forced acquisitions, VID International or would face the possibility of privatization.

Significant decline in profitability

How do Essity move at this time to a lesser mind?

Essity is not good enough to look back on the performance of the past few years. Income remained essentially at the level of more than 120 billion Swedish kroner (approximately $12 billion) in the period 1950-2021, with an increase of 28 to 15.6 billion Swedish kroner (approximately $15 billion) in the year 2022; however, the overall profits of the company declined for several years, with a decline of over 35 to 5567 million Swedish kroner (approximately $540 million) in the year 2022, and a net profit rate of 7.7 per cent to 3.56 per cent.

Lower profitability is associated with the price of raw materials. As a major international raw material, the price of paper pulp, the main raw material for living paper, is clearly influenced by the world economic cycle.

Since 2021, the price of paper pulp has been high, influenced by factors such as the volatility of the international situation. The data show that, at the end of 2021, the price of pulp was $500-6000/tons; at the end of 2022, the price of paper pulp was raised to $7400 - $7800/ton.

As in the case of large shareholders, the performance of VID in the last two years has also been affected by rising costs and a marked decline in profitability. Its 2022-year annual report shows that the Vida International Entrance, with an increase of 4.0 per cent, compared with a gross profit of SI$ 5483 million, a decline of 1.0 per cent, with a net profit of only SI 706 million, a decline of 56.9 per cent.

The company has a 2022-year Māori ratio compared to 2020

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