SunSirs: Shanying International Holdings Co., Ltd. Plans to Sell All or Part of Its Equity in Nordic Paper Industry to the Public

On the evening of March 12th, Shanying International announced that in order to adapt to the company's strategic planning adjustments, further optimize resource allocation, and focus on the development of the core industry chain, Shanying International Holdings Co., Ltd. plans to sell all or part of its equity in Nordic Paper Industry to the outside world, reducing the company's proportion in European business. Nordic Paper is a listed company on the Nasdaq OMX exchange in Stockholm, Sweden, with stock code NPAPER and international securities identification code SE0014808838. The company indirectly holds approximately 32.22 million shares of Nordic Paper through SUTRIV Holding AB, accounting for 48.16% of the total share capital of Nordic Paper.

Nordic Paper is headquartered in Karlstad, Sweden and has five paper mills, three of which are located in Sweden, one in Norway, and one in Canada. The Nordic Paper Industry mainly deals with natural oil resistant paper and kraft paper in the sub sectors of the paper industry. Its end products mainly include growth oriented products with special requirements in the food, consumer goods, construction, chemical and other industries. Its sales areas mainly focus on the high-end markets in Europe and North America, with some sold to East Asia and Australia.

In July 2017, Anhui Shanying Paper Industry Co., Ltd. announced that its Swedish subsidiary Goldcup 15172 AB had signed a share purchase agreement with Luxembourg Holding Blanc Bleu 5 S. á. rl (HBB) and Germany's Petek Gesellschaft zur Herstellung chemist Produkte mbH (Petek), deciding to acquire HBB's 61.2% stake in Nordic Paper Holding AB and Petek's 38.8% stake in Nordic Paper Holding AB. After the completion of this acquisition, Goldcup Sweden will hold 100% equity in Nordic. The transaction amount for this transaction is 2.4 billion Swedish kronor, approximately 1.952 billion RMB.

From its acquisition in 2017 to its exit in 2024, Nordic Paper has brought significant economic and technological benefits to Shanying International over the past seven years.

After the acquisition, Nordic Paper became an overseas cash cow for Shanying International with good profitability. According to reports, from the completion of the acquisition until June 30, 2020, Nordic Paper has contributed a net profit of 1.004 billion Swedish kroner to Shanying International.

On October 22, 2022, Shanying International completed the spin off and listing of Nordic Paper Industry. During the spin off and listing process, Shanying International sold its equity in Nordic Paper to obtain SEK 1.467 billion, with a total recovery of SEK 2.667 billion and continuing to maintain control over Nordic Paper.

The Nordic paper industry has a total production capacity of 500,000 tons of high-end specialty pulp and paper. As of now, the market value of Nordic paper industry is approximately 292.056 million Swedish kroner. If calculated based on the current market value, the sale of equity can bring approximately SEK 1.407 billion in revenue to Shanying International.

In addition to economic benefits, another visible benefit brought by the acquisition of Nordic Paper Industry to Shanying International is the technology transfer effect. Guangdong Shanying, a subsidiary of Shanying International, continuously launches new products in the field of special paper, bringing considerable profits to the company.

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