Imperial Brands Cigars Business Sale Delayed By Virus – Morningstar
(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; ericcunha@alliancenews.com
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