May 24, 2022 | Consumer Discretionary | Europe | Ended
Marlboro maker Philip Morris International (“PMI”) has bid to acquire Stockholm-based Swedish Match, a nicotine pouch manufacturer, for SEK 161.2bn. The SEK 106 per share offer, announced on 11-May-22, is cum dividend and, accordingly, future distributions, including Swedish March’s SEK 0.93 per share dividend (ex-11-Nov-22), will downwardly adjust the offer price. Nonetheless, the headline offer is a 39.4% premium over the target’s undisturbed price on 9-May-22, the day before The Wall Street Journal reported that the companies were in talks. The deal is structured as a public tender offer and is subject to a 90% minimum acceptance condition as well as to regulatory conditions from competition authorities in the US, EU, and Brazil, among others. PMI has already filed regulatory applications and expects to receive all clearances before the end of the acceptance period; it can waive any or all conditions to closing, including the minimum acceptance condition. There is no financing condition, but ...
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