Imperial Tobacco announces sale of HSA stake

[Frankinho007]

Hello everyone,

came across the news in a German cigar group. Today Imperial Brands (formerly known as Imperial Tobacco) announced the sale of their cigar business and thus their stake in HSA to Allied Cigar Corporation, S.L - which is apparently a Hong Kong based entity.

Here is the full press release:

https://www.imperialbrandsplc.com/media/key-announcements/2020/imperial-brands-plc-agrees-sale-of-worldwide-premium-cigar-busin.html

The key facts:

Quote

Allied Cigar Corporation, S.L will acquire Premium Cigar RoW for a total consideration of €1,040 million (£912 million). This transaction is subject to the fulfilment of certain conditions, including customary antitrust and other regulatory clearances.

•  

Quote

 

• Cuban premium cigar interests, including:

o    A 50 per cent stake in Habanos S.A., which exports hand-made cigars from Cuba and is responsible for international marketing activities. Habanos products include world-renowned Cuban brands such as Cohiba, Montecristo and Romeo y Julieta.
o    A 50 per cent stake in Altabana S.L., which is responsible for the distribution of Cuban cigars worldwide through its network of over 20 subsidiary distributors.
o    A 50 per cent stake in Internacional Cubana de Tabaco, S.A., which is responsible for the manufacturing of Cuban premium machine-made cigars.
o    A 50 per cent stake in Promotora de Cigarros, S.L., which manages the distribution of the Cuban premium machine-made cigar portfolio worldwide.

 

 

 

[Connoisseur Kim]

That would be a big game changer for CCs IMHO. The question is: Will HSA produce monsterous RG cigars even more than before (these sticks are popular in Asia too)? I wish it will be the momentum for releasing more new regular production skinnies, since there are huge successful skinnies such as Punch 8-9-8 and ManTua (they're ERs, but they are one of the winning releases) ?!

[ATGroom]

Interesting news. I wonder what happened with the Huabao deal that was widely reported a few months ago.

A quick search turns up a Hong Kong registered Allied Cigar Corporation that was incorporated 10th of March 2020, as well as a US incorporated company of the same name that has been around since the 1950s.

Interesting that Altidas USA is going to a different owner to HSA, as they own the NC versions of Montecristo, Romeo, Upmann etc, and their acquisition of these brands over the years has been seen as a strategy to simplify the legal issues with Cubans coming to the US if the embargo ever goes away. This deal would appear to have largely undone all that work.  

[Çnote]

1 hour ago, ATGroom said:

Interesting that Altidas USA is going to a different owner to HSA, as they own the NC versions of Montecristo, Romeo, Upmann etc, and their acquisition of these brands over the years has been seen as a strategy to simplify the legal issues with Cubans coming to the US if the embargo ever goes away. This deal would appear to have largely undone all that work.  

Halfwheel thinks it's holding companies under the same umbrella. 

https://halfwheel.com/imperial-sells-premium-cigar-business-for-1-3-billion/375668/

[Cigar Salute]

Well the Cubans said they wanted to increase their sales in China by 20-30% in the near future...Guess this is that plan coming to fruition...Maybe this will indirectly benefit FOH.  If PCC develops a good rapport with this company, perhaps it will give them more inventory & less out of stocks.  Crossing fingers that they don't try to have anymore of my beloved skinny vitolas culled!  Hopefully someone over there loves Panatelas, and can get us some MDO 4's rolled, and perhaps bring back some Lonsdales for us lol...Not holding my breath, just wishful thinking out loud ?‍♂️

[Joeyjojo]

Not wanting to fart on anyone's Weetabix, but we know exactly what this means: stupidly large ring gauge LE's to flog to Asian millionaires, and eventually larger production quotas which will mean even less QC.

I hope I'm wrong of course, but far from optimistic.