HONG KONG/SINGAPORE (From news reports) -- Indonesian pulp and paper tycoon Sukanto Tanoto is moving to expand his interests in tissue-making.

On Friday, his business group Royal Golden Eagle (RGE), unveiled an offer to take over Vinda International Holdings by buying shares in the Hong Kong-listed tissue maker at a premium price. Major shareholders of the company, Swedish personal care product maker Essity AB and Vinda's founder Li Chao Wang, who represent about 72.63% combined ownership in the company, have agreed to the offer.

Tanoto's daughter Belinda, who is Royal Golden Eagle's (RGE) managing director, already owns a 7.69% stake in the company through Beaumont Capital Fund. According to a filing with the Hong Kong Stock Exchange on Friday, the RGE offer price is HK$23.50 per share, a 13.5% premium to the Thursday close of HK$20.70. The filing said the RGE owner could pay a maximum of HK$26 billion ($3.3 billion) should all shareholders accept the offer.

The offer, if completed, would extend Tanoto's expansion into the tissue business. In January this year, RGE's unit Bracel acquired Brazil's OL Papeis and in April announced a $500 million investment to build tissue paper and pulp facilities in the country.

Sukanto Tanoto ranks 20th on the latest Forbes list of the richest Indonesians, with a net worth of $3.15 billion.

In a statement, Belinda Tanoto said Vinda's vision "is to be Asia's first choice for high-quality hygiene products and services. RGE continues to leverage on Asia's consumer growth story, and build a stronger, more efficient and more sustainable business."

Magnus Groth, president and CEO of Essity, said in a statement that the RGE offer was "very attractive" for Essity shareholders. "We maintain a presence in Asia and in Vinda through continued licensing of Essity's brands, with sustainability requirements for sourcing, production and collaboration in innovation and marketing. After completion of the bid, we will also reduce consumer tissue's share of Essity's total sales and enable increased focus on investments and growth in Essity's brands and higher-yielding categories," he said.

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