11th Jun 2015 09:10
LONDON (Alliance News) - British American Tobacco PLC said it has successfully priced a US dollar denominated issue of notes, raising proceeds of approximately USD4.5 billion that will be used to help fund its decision to maintain its stake in Reynolds American Inc and could also be used to pay down debt.
BAT has said a year ago that it would invest USD4.7 billion to maintain its existing 42% interest in the enlarged Reynolds American Inc group, following the acquisition of Lorillard Inc by Reynolds in a deal valued at USD27.4 billion. Last month, the Reynolds-Lorillard deal was approved by the US Federal Trade Commission.
BAT peer Imperial Tobacco PLC also bought bought a slice of the Reynolds American and Lorillard deal, with Imperial acquiring a portfolio of US cigarette brands, office and productions facilities, which prior to the deal was owned by Lorillard.
BAT shares were up 0.3% at 3,443.35 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
British American TobaccoIMT.L