Philip Morris International agrees to purchase the majority stake in Lakson Tobacco Pakistan
January 19, 2007Philip Morris International (PMI) today announced that it has entered into an agreement to acquire an additional 50.21% stake in Pakistan cigarette manufacturer, Lakson Tobacco Company Limited(Lakson Tobacco), from a number of Lakson Tobacco’s principal shareholders for PKR 666.89 (USD 10.96) per share. PMI currently holds 40% stake in Lakson Tobacco and this transaction will bring PMI’s stake in Lakson Tobacco to approximately 90%.
In accordance with Pakistan securities law, PMI will proceed to make a public tender offer for all of the remaining shares at the same price per share to be paid to the principal shareholders. Based on a price per share of PKR 666.89, Lakson Tobacco is valued at PKR 41.07 billion (USD 674.9 million).
Lakson Tobacco is Pakistan’s second largest tobacco company, with an estimated cigarette volume of 29.8 billion units in fiscal year, ending 30 June, 2006, generating net revenues of approximately USD 160.5 million. Its EBITDA was USD 46.1 million in 2006 and the Company held an estimated 47% share of the growing 63 billion-unit Pakistan cigarette market…. Source : Philip Morris International
