Essity (ESSITYb.ST): Press reports point to imminent Consumer Tissue sale process

Press reports suggest Essity could launch the sale process for its Consumer Tissue business as early as next month, with the strategic review concluding in H1 27, in line with past comments. Industry players and private equity firms are reportedly expected to be invited to bid, while Essity pursues a dual-track process evaluating a sale or standalone listing, consistent with management's previously outlined options. The article cites a potential valuation of €2.5bn-€3.0bn, implying 4x-5x our FY27 Consumer Tissue EBITDA forecast. This is below the 6x-10x range of comparable transactions we have previously identified and Essity's own 8x valuation. As we previously discussed, the lower the valuation achieved relative to the group multiple, the greater the core-business re-rating required for the transaction to be value accretive, in our view. We expect an update on strategic review with Q3 results on 22 October. While a Consumer Tissue divestment could re-rate the core business, uncertain