Acquisition of Reynolds almost done

BRITISH American Tobacco (BAT) said yesterday that its shareholders would be meeting next month to propose the resolution that will approve the acquisition of Reynolds. This comes after the UK Listing Authority approved a Class 1 circular and a prospectus in relation to BAT recommended offer to acquire the remaining 57.8 percent of Reynolds that it does not already own. BAT already owns 42 percent of Reynolds. In January, BAT agreed a $49.4 billion (R631.65bn) takeover of the US maker of Camel and Newport cigarettes, in a bid to create the world’s biggest listed tobacco company after it increased an earlier offer by more than $2bn. The proposed BAT acquisition of Reynolds has already cleared the US antitrust hurdle. The circular contains a notice convening a general meeting of BAT, which is to be held next month in London. The meeting is expected to propose the resolution to approve the acquisition and the authority for the directors of BAT to allot and issue new BAT shares. The prospectus relates to the proposed issue of new ordinary shares in connection with the acquisition. The expected effective date of the completion of the proposed acquisition is expected to be on or around July 25.