Philip Morris International (PMI) has submitted an offer of 161,200 million Swedish crowns (15,174 million euros) for the acquisition of the Swedish tobacco company Swedish Match, specialized in snuff and chewing tobacco, with the support of the company’s management scandinavian
The multinational offers a cash payment of 106 Swedish crowns (9.98 euros) for each share of Swedish Match, which represents a premium of 39.4% compared to the closing price of the Swedish company’s shares last Monday, before information about the possible transaction came to light, and 39.7% over the weighted average of the last 30 sessions.
Swedish Match’s management has decided to recommend the proposed purchase to the company’s shareholders, considering that its terms recognize Swedish Match’s long-term growth prospects, taking into account the risks associated with realizing the prospects.
PMI has noted that the transaction, if completed, would result in a combined company with a strong balance sheet and leverage of approximately three times net debt to closing adjusted Ebitda, with deleveraging expected in the coming years. PMI has suspended its current three-year share buyback program, which began in July 2021. PMI’s proposal, among other conditions, is subject to an acceptance of more than 90% of Swedish Match’s outstanding shares.
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