10th Sep 2015 11:15
LONDON (Alliance News) - British American Tobacco PLC on Thursday said that its Brazilian controlled company has launched a public tender offer to buy up to all of the 24.7% stake it doesn't already own in Brazilian cigarette maker Souza Cruz.
It will then seek to delist Souza from the stock exchange. The news comes after the Brazilian regulator, Comissão de Valores Mobiliários, approved its offering documentation.
The offer values Souza Cruz at BRL27.62 per share in cash, cut by dividends and interest on own capital declared by Souza prior to completion of the offer.
At that price, if adjusted for dividends and interest on own capital, the offer is equivalent to a premium of about 37.1% to the volume-weighted average of the shares over three months prior to the closing price on the trading day before the first announcement of British American Tobacco's possible offer for Souza on February 23.
Aberdeen Asset Management PLC, the fund manager, is the biggest single shareholder in Souza besides British American Tobacco. It owns about 4.5% of the company - or 18.3% of the free float - and has agreed to the deal.
The offer requires approval from two-thirds of the free float to go through.
British American Tobacco shares were down 1.3% at 3,425.00 pence shortly after midday on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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