Marlboro maker Philip Morris International (PMI) (PM.N) overcame some opposition to clinch 83% of Swedish Match (SWMA.ST), short of the 90% it wanted but enough to convince it to press on with a $16 billion deal that will cut its exposure to cigarettes.
PMI had previously said it could drop its bid if it did not reach the 90% threshold at which it can start a compulsory purchase of remaining shares.
The U.S. group said on Monday it believed that level could ultimately be achieved, and that Swedish Match’s 10 largest shareholders had accepted its bid.
That would mean activist investor Elliott Management, which had built a 10.5% stake in Swedish Match and opposed PMI’s offer, had tendered its shares. Elliott declined to comment.
“Our intention is still to take the company entirely private, so it is better for the (Swedish Match) shareholders if they tender their shares,” PMI Chief Executive Jacek Olczak told Reuters.
PMI said it had extended its offer, now unconditional, until Nov. 25 in the hope of further raising its stake, and Olczak said that could lead some index funds that have not already tendered their shares to do so, in addition to other holdouts
PMI made a 106 crowns per share offer to buy Swedish Match in May, and then raised it to 116 crowns per share in October after some investors said the initial price was too low.
Marie Mannes – Reuters- 2022-11-07
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