Philip Morris to take over Lakson Tobacco this month

Philip Morris the makers of world famous Marlboro cigarettes will take management control of Lakson Tobacco Company (LTC) this month.

Philip Moris would takeover LTC within two business days after the closing date of the Public Offering it would make for acquiring remaining 9.79 per cent (i.e. 6,030,279) ordinary shares at Rs666.89 per share on February 15, 2007, Philip announced on Thursday.

However, Iqbal Ali Lakhani, LTC’s outgoing Chief Executive and one of the sellers shall remain as an adviser to the acquirer’s group in Pakistan for a transitional period of three years at a monthly fee of Rs1,50,000 during the first years, progressively reducing thereafter, payable by the acquirers’ group.

The acquirer and the sellers have agreed that LTC shall continue to use the Lakson name and associated trademarks in relation to its tobacco business and the sellers and their affiliate shall retain their existing rights over the Lakson name and associated trademarks for other businesses.

Therefore, FTR Holding SA (FTR) and Philip Morris Participations BV the acquirer, both subsidiaries of Philips Morris International Inc., currently own respectively, 12,316,061 and 12,316,062 ordinary share of LTC, which together constitute 40 per cent of the issued and paid up share of LTC.

Philip Morris desiring to consolidate its shareholding in LTC has earlier entered into an agreement with certain principal shareholders for the acquisition of 30,917,939 ordinary shares of Rs10 each of LTC (representing 50.21 per cent of the issued and paid up share capital of LTC) held by sellers and their associates at a purchase price at Rs666.89 per share, and intend to acquire through Public Offering all of the remaining issued and paid up shares of LTC not held by the acquirer, FTR or the Group sellers, being 6,030,279 ordinary shares of Rs10 each of LTC (representing 9.79 per cent of the total issued and paid up capital of LTC) at a purchase price of Rs666.89 per share being the offer price.

The offer price is the same as the purchase price per share to be paid to the group sellers.

The offer price is ex-dividend of the interim dividend of Rs5.80 per share of Rs10 each declared by LTC’ Board of Directors on January 23, 2007, which shall be payable by LTC to all shareholders of the Company whose name appear on the share register of LTC on February 14, 2007.

Source: The News