Imperial Cigar Business Sale to be Settled October 29

[El Presidente]

News

Imperial Brands Cigars Business Sale Delayed By Virus "Challenges"

(Alliance News) - Imperial Brands PLC on Monday said the EUR1.23 billion sale of its global ...

Alliance News28 September, 2020 | 8:19AM

(Alliance News) - Imperial Brands PLC on Monday said the EUR1.23 billion sale of its global premium cigars business has been delayed slightly due to Covid-19.

The deal is now penned to be completed on October 29. The FTSE 100-listed consumer goods firm - which owns the Davidoff and Winston cigarette brands - agreed the sale back in April.

Gemstone Investment Holding Ltd is to buy Premium Cigar USA for EUR185 million with Allied Cigar Corp SL acquiring the company's Rest of the World cigars business for EUR1.04 billion.

The Rest of the World business includes a 50% stake in Cuban cigar manufacturers and distributors Habanos SA, Altabana SL, Internacional Cubana de Tabaco SA, Promotora de Cigarros, SL. It also includes non-Cuban premium handmade cigar sales operations outside the US, including Vegafina brand, and cigar manufacturing facilities in Honduras and Dominican Republic.

"Given the challenges caused by Covid, Imperial has agreed to complete both transactions on 29 October 2020, slightly delayed from the original timetable," Imperial Brands said.

The purchasers have made a non-refundable down payment of EUR91.7 million, Imperial Brands noted. A further payment of EUR85 million is expected by October 7.

"Imperial has also agreed to provide a six-month vendor loan at completion of up to EUR250 million while the purchasers finalise long-term financing arrangements," the company added.

Imperial Brands shares were 0.9% higher at 1,408.00 pence each in London early on Monday morning.

By Eric Cunha; [email protected]

[mprach024]

3 minutes ago, El Presidente said:

News

Imperial Brands Cigars Business Sale Delayed By Virus "Challenges"

(Alliance News) - Imperial Brands PLC on Monday said the EUR1.23 billion sale of its global ...

Alliance News28 September, 2020 | 8:19AM

(Alliance News) - Imperial Brands PLC on Monday said the EUR1.23 billion sale of its global premium cigars business has been delayed slightly due to Covid-19.

The deal is now penned to be completed on October 29. The FTSE 100-listed consumer goods firm - which owns the Davidoff and Winston cigarette brands - agreed the sale back in April.

Gemstone Investment Holding Ltd is to buy Premium Cigar USA for EUR185 million with Allied Cigar Corp SL acquiring the company's Rest of the World cigars business for EUR1.04 billion.

The Rest of the World business includes a 50% stake in Cuban cigar manufacturers and distributors Habanos SA, Altabana SL, Internacional Cubana de Tabaco SA, Promotora de Cigarros, SL. It also includes non-Cuban premium handmade cigar sales operations outside the US, including Vegafina brand, and cigar manufacturing facilities in Honduras and Dominican Republic.

"Given the challenges caused by Covid, Imperial has agreed to complete both transactions on 29 October 2020, slightly delayed from the original timetable," Imperial Brands said.

The purchasers have made a non-refundable down payment of EUR91.7 million, Imperial Brands noted. A further payment of EUR85 million is expected by October 7.

"Imperial has also agreed to provide a six-month vendor loan at completion of up to EUR250 million while the purchasers finalise long-term financing arrangements," the company added.

Imperial Brands shares were 0.9% higher at 1,408.00 pence each in London early on Monday morning.

By Eric Cunha; [email protected]

What, if any, impact do you see come from this Rob?  For you or your customers I suppose

[El Presidente]

1 minute ago, mprach024 said:

What, if any, impact do you see come from this Rob?  For you or your customers I suppose

Not much at least initially. 

My understanding is that the Spanish execs will continue to run it for a few years while the new owners get a look and feel for what they have. 

Having said that. 

Election to the Dems, embargo dropped/watered down and you have a brilliant potential flick play here worth hundreds of millions.   You may have a new owner this time next year. 

[mprach024]

35 minutes ago, El Presidente said:

Not much at least initially. 

My understanding is that the Spanish execs will continue to run it for a few years while the new owners get a look and feel for what they have. 

Having said that. 

Election to the Dems, embargo dropped/watered down and you have a brilliant potential flick play here worth hundreds of millions.   You may have a new owner this time next year. 

Thanks for that take Rob, I’m not educated in such things so appreciate that.  Be interesting what would happen to the CC market should it make its way into USA.  I’d assume the prices would go way up and quality would crap out as they tried to meet demand. At least as long as Cuba continued to nationalize it’s product and not allow the Padrons or Fuentes of the world to come in and create their own product.   But what do I know?  Americans would probably do what a lot of other countries do, buy our Cubans from other countries and have them shipped in (just legally and with faster shipping).  I’m sure our taxes would be huge.  Cheers, have a great weekend.   

[yossie]

57 minutes ago, Psiman said:

That’s chicken scratch compared to what Suntory paid for Beam which was 16 billion and they went and bought Maker’s Mark as well for huge money. Suntory should have bought Atladis because it’s a drop in the bucket and they could focus on Asian markets.Suntory know how to market. Just turn on sports now and every third commercial is for Beam 225th anniversary and Maker’s Mark with the cute girl that works at the factory. Yamasaki 18 went from $80 to $600 A bottle in about five years. 

Cigars are less popular than whisky in Japan... (Most of people believe Cigars are for the extreme wealthy or mafia. ) Even JTI doesn't invest on cigar and pipe industry only but withdrew from their pipe tobacco production .