Swedish hygiene products group Essity has made a non-binding indicative proposal to buy more shares in Australian hygiene company Asaleo Care Limited, where it is already the largest shareholder.
Essity, which currently owns 36.2% in Asaleo, said the proposal put forward to Asaleo's board was to buy stock at A$1.26 ($0.9403) per share, compared to the firm's market close of A$1.01 on Wednesday. The closing price corresponds to a market value of A$549 million.
"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," Essity said in a statement on Thursday.
Essity said it will finance its acquisition of shares through own funds.
($1 = 1.3399 Australian dollars)
(Reporting by Johannes Hellstrom;Editing by Simon Johnson)
