Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

After its first Offer was rejected by <a href="https://www.smartkarma.com/entities/asaleo-care-ltd" target="_blank" data-smartkarma-citation="entities:19923:1" rel="noopener">Asaleo Care Ltd (AHY AU)</a> board, Swedish outfit <a href="https://www.smartkarma.com/entities/essity-ab" target="_blank" data-smartkarma-citation="entities:28203:1" rel="noopener">Essity AB (ESSITYB SS)</a> returned on the 17 February with an improved <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02342161-3A561375?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.45/share proposal</a> - up from $1.26/share - comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked.
The record date for the ordinary dividend of A$0.03/share was the 16 March.
The Scheme Doc was <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02366574-3A565799?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">released</a> on the 23 April, and yesterday Asaleo shareholders overwhelmingly (99%+) <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02380616-3A568149?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">voted</a> for the Scheme. 
Done &amp; dusted. The implementation date is expected to be on the 1 July. The special dividend of A$0.02/share will be paid on the 21 June, with a record date of the 15 June.
More below the fold.

After its first Offer was rejected by Asaleo Care Ltd (AHY AU) board, Swedish outfit Essity AB (ESSITYB SS) returned on the 17 February with an improved A$1.45/share proposal - up from $1.26/share - comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked.
The record date for the ordinary dividend of A$0.03/share was the 16 March.
The Scheme Doc was released on the 23 April, and yesterday Asaleo shareholders overwhelmingly (99%+) voted for the Scheme. 
Done &amp; dusted. The implementation date is expected to be on the 1 July. The special dividend of A$0.02/share will be paid on the 21 June, with a record date of the 15 June.
More below the fold.

Asaleo (ASX: AHY): Essity’s Offer Gets Up

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On the 10 December, Swedish outfit <a href="https://www.smartkarma.com/entities/essity-ab" target="_blank" data-smartkarma-citation="entities:28203:1" rel="noopener">Essity AB (ESSITYB SS)</a> made a conditional, non-binding <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02320914-3A557776?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.26/share Offer</a> for the remaining 63.8% of <a href="https://www.smartkarma.com/entities/asaleo-care-ltd" target="_blank" data-smartkarma-citation="entities:19923:1" rel="noopener">Asaleo Care Ltd (AHY AU)</a> it did not already own, either by way of a Scheme or an off-market takeover.
Concurrent with a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02333643-3A559971?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">trading update on the 27 January</a>, AHY's independent board committee concluded the proposal fundamentally undervalued Asaelo and was materially inadequate.
Essity has now returned with an improved <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02342161-3A561375?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.45/share proposal</a>, comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked. A$1.45 represents a premium of 43.6% to the undisturbed price. The Scheme is not subject to financing or due diligence. 
Independent non-Essity directors and AHY's CEO recommend the Offer.
The parties have entered into a Scheme implementation agreement. Provided the Scheme is approved, implementation is expected late-June of this year.
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More below the fold.
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On the 10 December, Swedish outfit Essity AB (ESSITYB SS) made a conditional, non-binding A$1.26/share Offer for the remaining 63.8% of Asaleo Care Ltd (AHY AU) it did not already own, either by way of a Scheme or an off-market takeover.
Concurrent with a trading update on the 27 January, AHY's independent board committee concluded the proposal fundamentally undervalued Asaelo and was materially inadequate.
Essity has now returned with an improved A$1.45/share proposal, comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked. A$1.45 represents a premium of 43.6% to the undisturbed price. The Scheme is not subject to financing or due diligence. 
Independent non-Essity directors and AHY's CEO recommend the Offer.
The parties have entered into a Scheme implementation agreement. Provided the Scheme is approved, implementation is expected late-June of this year.


More below the fold.


Asaleo (ASX: AHY): Essity's Revised Offer

Swedish outfit <a href="https://www.smartkarma.com/entities/essity-ab" target="_blank" data-smartkarma-citation="entities:28203:1" rel="noopener">Essity AB (ESSITYB SS)</a> has made a conditional, non-binding A$1.26/share offer for the remaining 63.8% of <a href="https://www.smartkarma.com/entities/asaleo-care-ltd" target="_blank" data-smartkarma-citation="entities:19923:1" rel="noopener">Asaleo Care Ltd (AHY AU)</a> it does not already own, either by way of a Scheme or an off-market takeover.
Hygiene, personal care, and consumer tissue products producer Asaleo <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02320914-3A557776?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">said</a> the Offer price, a 24.7% premium to last close, reflected a low takeover premium to recent market prices and was highly opportunistic in timing.
However, Asaleo added it was still in the early stages of assessing the proposal.
It is understood this is Essity's initial Offer, suggesting there is scope for a bump.
More below the fold.

Swedish outfit Essity AB (ESSITYB SS) has made a conditional, non-binding A$1.26/share offer for the remaining 63.8% of Asaleo Care Ltd (AHY AU) it does not already own, either by way of a Scheme or an off-market takeover.
Hygiene, personal care, and consumer tissue products producer Asaleo said the Offer price, a 24.7% premium to last close, reflected a low takeover premium to recent market prices and was highly opportunistic in timing.
However, Asaleo added it was still in the early stages of assessing the proposal.
It is understood this is Essity's initial Offer, suggesting there is scope for a bump.
More below the fold.

Sweden

Essity Aktiebolag develops, produces, and sells personal care products. The Company offers products such as toilet papers, household towels, handkerchiefs, facial tissues, hand sanitizers, dispensers, wet wipes, and napkins. Essity markets its products globally.

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Essity (ESSITYB SS)

Asaleo (ASX: AHY): Essity’s Offer Gets Up

This has and will continue to trade tight to terms. Depending on their individual tax circumstances, some shareholders can take advantage of the...

David Blennerhassett

Asaleo (ASX: AHY): Essity's Revised Offer

Trading at a spread of 1.4%/3.9% gross/annualised. Depending on their individual tax circumstances, some shareholders can take advantage of the...

David Blennerhassett

Asaleo (ASX: AHY)/Essity: Bottom Feeders

Essity can easily pony up another A$0.15-A$0.20/share, or ~10% upside from here. I would expect Essity to return with a higher Offer. However, this...

David Blennerhassett

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