UPDATE 1-Australia's Asaleo Care to be bought by Swedish tissue maker Essity

(Adds offer premium, chairman statement)

Feb 17 (Reuters) - Asaleo Care Ltd on Wednesday agreed to be bought by its largest shareholder Essity in a deal that valued the hygiene and personal products maker at about A$788 million ($611.33 million).

Asaleo Care shareholders would receive A$1.45 per share under the offer, the company said, representing a premium of 6.2% to its last closing price. Tissue maker Essity holds a 36.2% stake in Asaleo through a subsidiary.

Essity’s offer price included a dividend of A$0.03 per share and a special payout of A$0.02 per share that Asaleo declared along with full-year results on Wednesday.

“Essity is a long-term strategic partner for Asaleo and there is a strong commercial logic for this combination. Essity will further enhance our position in the markets in which we operate,” Asaleo Chairman, Harry Boon, said in a statement. ($1 = 1.2890 Australian dollars) (Reporting by Rashmi Ashok in Bengaluru; Editing by Arun Koyyur)