Reuters - British
American Tobacco (BATS.L)
has offered to buy U.S. tobacco company Reynolds American Inc (RAI.N)
in a $47 billion deal that would bring together
Newport, Kent and Pall Mall
cigarettes in the world's biggest listed tobacco company.
The British
group, which has a 42 percent stake in Reynolds, said its offer valued the
company's shares at $56.50, of which $24.13 would be in cash and $32.37 would
be in BAT shares, representing a premium of 20 percent over the closing price
of Reynolds stock on Thursday.
The total
consideration for the remaining 57.8 percent of Reynolds would be $47 billion,
of which approximately $20 billion would be in cash and $27 billion in BAT
shares, it said on Friday.
BAT Chief
Executive Nicandro Durante said the deal would create the U.S. market leader
and the world's largest listed tobacco company by net turnover and operating
profit.
"We are
proud of the Group's track record of consistent delivery for shareholders and
bringing these two great companies together would further strengthen that
delivery in the future," he said.
BAT also said
on Friday it had performed well in the first nine months of the year, growing
both revenue at constant rates of exchange and cigarette volumes, driven by its
focus on key brands Dunhill, Lucky Strike, Pall Mall and Rothmans.
Year-to-date
revenue grew 8.1 percent at constant rates of exchange, as its biggest brands
sold 9.8 percent more cigarettes.
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