Philip Morris International Inc. (“PMI”) Announces Agreement to Acquire a 49% Interest in Arab Investors-TA (FZC) for $625 Million
NEW YORK--(BUSINESS WIRE)--Sep. 30, 2013--
Philip Morris International Inc. (NYSE / Euronext Paris: PM) announces
today its entry into a definitive agreement to acquire 49% of the shares
of United Arab Emirates-based Arab Investors-TA (FZC) (“AITA”) for $625
million. Through its acquisition of 49% of the shares of AITA, PMI will
secure an almost 25% economic interest in the Société des Tabacs
Algéro-Emiratie (“STAEM”), a joint venture which is 51% owned by AITA
and 49% by the Algerian state-owned Société Nationale des Tabacs et
Allumettes SpA, the market leader. STAEM, with which PMI has had a
successful partnership since 2005, manufactures and distributes under
license PMI’s Marlboro and L&M brands, which together
hold a significant share of the international trademarks sold in
Algeria, placing PMI’s brand portfolio as the second largest in the
market. This equity investment in AITA will provide PMI with enhanced
earnings from Algeria and is projected to be accretive to PMI’s earnings
per share as of 2014.
“With the fourth largest total GDP in Africa, and an estimated cigarette
market of 30 billion units, Algeria holds tremendous potential for
future growth,” said Miroslaw Zielinski, PMI’s President, Eastern
Europe, Middle East & Africa Region and PMI Duty Free.
“This agreement confirms our confidence in the Algerian economy, the
cigarette industry and their long-term prospects. Over the last five
years, Algeria has been a key driver of the growth of our premium brands
in North Africa and the investment we are announcing today will
significantly enhance our prospects in the country. Our new partnership
with the UAE-based investors from whom we are acquiring the 49% interest
in AITA also opens additional business opportunities in Egypt and
certain other North African and Middle Eastern markets where there is
potential for further expansion.”
Philip Morris International Inc.
Philip Morris International Inc. (PMI) is the leading international
tobacco company, with seven of the world’s top 15 international brands,
including Marlboro, the number one cigarette brand worldwide.
PMI’s products are sold in more than 180 markets. In 2012, the company
held an estimated 16.3% share of the total international cigarette
market outside of the U.S., or 28.8% excluding the People’s Republic of
China and the U.S. For more information, see www.pmi.com.
Source: Philip Morris International Inc.
Philip Morris International Inc. Investor Relations: New York:
+1 (917) 663 2233 Lausanne: +41 (0)58 242 4666 or Media: Lausanne:
+41 (0)58 242 4500
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