SCA will implement a compulsory redemption of the minority shares outstanding in its German subsidiary SCA Hygiene Products SE (Societas Europeas), formerly PWA. The value of the shares is approximately SEK 1,000m, according to an independent valuation.
Following SCA’s acquisition of PWA back in 1995, a large minority stake remained in the company. After the redemption offer in 1997, 3.4% of the share capital remained as a minority stake. At that time, the compulsory redemption of shares was not possible in Germany.
SCA will now implement a compulsory redemption of the minority shares outstanding and the formal decision was taken at the German subsidiary’s Annual General Meeting on Friday, May 17.
PWA was earlier renamed SCA Hygiene Products SE (Societas Europeas). The company’s sales for 2012, including subsidiaries in Europe and America, was EUR 4,213m (approximately SEK 37bn), corresponding to just under half of SCA’s global hygiene business.
An independent appraiser valued the shares in the company at EUR 487.81 each, which amounts to EUR 117,5m (approximately SEK 1,000m) for the minority stake. This value also constitutes SCA’s offering to the minority shareholders.
Following approval of the compulsory redemption, the minority shares will be transferred to SCA later in the year.
Stockholm, May 20, 2013
For further information, please contact: Boo Ehlin, VP Media Relations, +46 8 788 51 36
Attached file: SCA implements compulsory redemption of shares