Oral arguments were held on March 12th before the D.C. Circuit Court of Appeals on Twin Rivers’ petition for review of SEC Rule 30e-3, legislation that threatens consumer access to critical investor information. Twin Rivers is leading a coalition that petitioned the court to vacate the rule as unlawful, arguing that the SEC failed to meet its statutory duty to consider comments and alternatives from the Investor Advisory Committee and that the SEC failed to properly consider the costs and benefits of the rule. Ken Winterhalter, President and CEO of Twin Rivers Paper Company said, “We were very pleased to see the close questioning the SEC was subjected to during the court argument on the SEC’s rule 30e-3.” In particular, one judge pressed the SEC on its failure to respond to recommendations from the Commission’s Investor Advisory Committee and to consider alternatives to the rule before finalizing it. Saying the SEC’s decision to issue the rule regardless “turned the world upside down,” referring to the rule’s use of implied consent to reverse the default form of shareholder reports from paper to electronic form, the judge questioned the value of the Commission’s offer instead to take comments in the future on any changes that would need to be made to deal with problems in the funds’ disclosure statements. Click Read More below for additional detail.
SCA has decided to discontinue its hygiene business in India. Four years after entering the Indian market, our conclusion is that profitability cannot be achieved within a reasonable timeframe. SCA prioritizes growth in selected emerging markets such as China, Southeast Asia, Latin America, Eastern Europe and Russia, where the company already holds strong market positions. Emerging markets accounted for 32% of SCA’s net sales in 2015.
The total cost of the discontinuation of operations are expected to amount to approximately SEK 350m and will be recognized as an item affecting comparability in the fourth quarter of 2016. Approximately SEK 50m of these costs are expected to impact cash flow.
The hygiene business in India reported total net sales of approximately SEK 110m in 2015, the majority of which related to baby diapers.
The hygiene business in India will be discontinued in the first quarter of 2017.