RGE eyes joining Vinda bidding

Singapore-based RGE is considering an offer for Vinda International (3331), sources said, potentially setting up a bidding war for the tissue maker.

The pulp producer is working with advisers on a potential buyout offer for the Chinese firm.

A move by RGE could add a new dimension to the bidding for Essity's 52 percent stake in Vinda, which has drawn bidders such as Suzano, the world's largest producer of hardwood pulp from Brazil. Buyout firms Bain Capital, CVC Capital and DCP Capital also advanced in the process.

Belinda Tanoto, the daughter of RGE's founder, has built a 7 percent stake in Vinda via Beaumont Capital Fund. Any new major shareholder will also have to work closely with Vinda's founder Li Chaowang, who owns about 21 percent. Shares of Vinda jumped as much as 5.1 percent before paring the gain to 1.7 percent.