China’s largest producer of sanitary napkins, baby diapers and tissue papers, Hengan International Group, has reportedly acquired a 50.4% stake in Wang-Zheng and has made an offer to takeover the remaining shares in the Malaysian hygiene company.
The offer was made at a 3.64% premium to Wang-Zheng’s closing share price last Friday. Wang-Zheng shares have since risen to close at RM1.14 yesterday.
Wang-Zheng manufactures and distributes processed paper and disposable products like diapers and sanitary napkins, sold under its own brands, including Drypro, Dryplus, Carina and Carefeel. Wang-Zheng is also an original equipment manufacturer for various local and foreign brands.
In a filing with Bursa Malaysia, Wang-Zheng said Hengan launched the takeover after its indirect wholly-owned subsidiary, Hengan Investments Co Ltd, inked agreements with four parties—Wang-Zheng Resources Sdn Bhd, Macro-Link Sdn Bhd, Charost Ltd and Zhong Xin Ltd—to buy their collective 80 million shares (representing 50.4% of shares) in Wang-Zheng for a total of RM91.2 million ($14 million).