Ac­qui­si­tion of Reynolds al­most done

The Star Early Edition - - COMPANIES -

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.

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