RGE Pte, a Singapore-based pulp producer, is considering an offer for Vinda International Holdings Ltd., people with knowledge of the matter said, potentially setting up a bidding war for the Hong Kong-listed tissue maker.

RGE is working with advisers on a potential buyout offer for the Chinese firm, the people said. Deliberations are ongoing and RGE could still decide against a deal, said the people.

A move by RGE could add a new dimension to the bidding for Swedish personal care product maker Essity AB’s 52% stake in Vinda, which has drawn bidders such as Suzano SA, the world’s largest producer of hardwood pulp from Brazil.

Buyout companies Bain Capital, CVC Capital Partners and DCP Capital also advanced in the process.

Belinda Tanoto, the daughter of RGE’s founder, has built a 7% stake in Vinda via Beaumont Capital Fund in recent weeks, exchange filings show.

Should Tanoto acquire more shares in Vinda, she could potentially block any deal for the tissue paper maker, adding complexity to the talks of Essity’s majority stake sale, the people said.

Any new major shareholder will also have to work closely with Vinda’s founder Li Chaowang, who owns about 21%, the people said.

A representative for RGE declined to comment, while a spokesperson for Essity said the strategic review was going according to plan and they would not comment further.

Vinda owns one of China’s top tissue brands and sells products under the Tempo and Tork brands. It also makes products for feminine care, baby care and incontinence. The firm has 13 production bases across the Chinese mainland, Taiwan and Malaysia.                   (SD-Agencies)