SCA to Decide Split into Hygiene, Forest Products at Annual General Meeting

SCA, Sweden, earlier announced that it would propose to the company’s 2017 annual general meeting to decide on a split of the SCA Group into two listed companies; one to operate the hygiene business and one to operate the forest products business. 

In addition to a proposed cash dividend of SEK 6.00 per share, the company’s board of directors this week decided to propose to the SCA Annual General Meeting on April 5, 2017, that a decision be made on the distribution of all shares in the wholly owned subsidiary SCA Hygiene AB to shareholders of SCA. Additional information to SCA's shareholders regarding the proposed distribution of shares in SCA Hygiene AB will be published in the form of an information brochure on the company's website in the week beginning March 6. Shortly thereafter it will be distributed to all shareholders.  

 

The SCA Board of Directors has also decided to propose that the annual general meeting authorize the board of directors to determine the record date for the distribution of all shares in SCA Hygiene AB. Should the shareholders vote in favor of this distribution proposal, the plan is to distribute the shares in SCA Hygiene AB in accordance with Lex Asea rules and to list the company on Nasdaq Stockholm, here the share is expected to be traded on the Nordic list and the segment Large Cap. In addition to their existing shareholding, SCA's shareholders will also receive shares in the newly listed hygiene company in connection with the listing. Each share of Class A in SCA carries entitlement to one share of Class A in SCA Hygiene AB and each share of Class B in SCA carries entitlement to one share of Class B in SCA Hygiene AB.  

 

A split of the Group and a distribution and listing of the shares in the subsidiary that today operates the hygiene business is expected to increase focus, customer value, development opportunities, and enable each company to successfully realize its strategies under the leadership of separate and dedicated management teams. This is considered to increase value for SCA's shareholders in the long term. An evaluation of various methods and structural alternatives has been carried out.

 

Following a split, there will be two listed companies, one of which will be SCA, an efficient and well-invested forest products company that will include the forest products operations and all forest land currently owned by the SCA Group. The second will be a leading global hygiene and health company and will include the current SCA business areas of Personal Care and Tissue. This company will be given a new name.