Vinda surges 12pc as Brazil giant eyes stake

Shares of Vinda International (3331) surged more than 12 percent on reports that Brazil's Suzano, the world's largest pulp maker, may join in the bidding for Vinda's equity.

Essity, the controlling shareholder of Vinda, announced in April a review of its investment strategy, considering the potential divestment of its stake in Vinda, which may involve selling some or all of its shares in the company.

It was reported that Suzano, Bain Capital, CVC Capital Partners and DCP Capital are potential bidders for Vinda's equity.

The bidders are seeking financing to complete the acquisition and may form a consortium, with Li Chao Wang, Vinda's second-largest shareholder and founder, potentially collaborating with one of the buyers.

Vinda's shares jumped by 12.36 percent to HK$17.82 yesterday.

Meanwhile, shares in Hua Hong Semiconductor (1347), China's second-largest chip foundry, rose as much as 13 percent in its Shanghai debut, after the company raised US$3 billion (HK$23.4 billion) in China's biggest public offering so far this year, but its shares in Hong Kong fell more than 11 percent.