Swedish partner seeks bigger stake in Aussie company.

 

Australian personal hygiene products group Asaleo Care Ltd has been placed in a trading halt following an announcement by Essity that it wants to increase its stake in the company.

 

Swedish group Essity's $1.26 per share offer for the remaining 63.8 per cent of Asaleo, which it doesn't already own, has been described by financial commentators as “uncompelling” for Asaleo’s shareholders.

 

Essity already licenses several brands to Asaleo, including ‘Tork’ and ‘Tena’ until 2027. These two brands alone reportedly made up the majority of Asaleo’s earnings last financial year.