Philip Morris International said today that one of its affiliates has signed an agreement to acquire shares equal to approximately 76% of the Greek cigarette company Papastratos at a maximum price of 18.15 euros per share, representing a total cash consideration of up to 371 million euros.
Completion of the acquisition is subject to approval by the appropriate regulatory and competition authorities, the results of due diligence, approval by the Board of Directors of Altria Group, Inc., the ultimate parent company of the purchaser, and other customary conditions. The purchase price of 18.15 euros per share is subject to downward adjustment, depending on the results of due diligence.
"Philip Morris International has a decades-long, successful relationship with Papastratos in Greece and with this acquisition, we obtain attractive, growing trademarks in the Assos, President and Papastratos brands," said Andre Calantzopoulos, Philip Morris International's President and CEO.
Once the transaction is completed, a public tender offer will be made for the remaining outstanding shares of Papastratos. Completion of the transaction is expected to occur in the second half of 2003. Prior to completion of the transaction, Papastratos shareholders will also receive the dividend for 2002 to be approved at the Papastratos Annual General Meeting on May 7, 2003.
Information on Papastratos
Papastratos was established in 1930 and is the largest manufacturer and distributor of cigarettes in Greece.
Information on Philip Morris International
Philip Morris International is one of the operating companies of Altria Group, Inc. Philip Morris International, based in Lausanne, Switzerland, is a leading tobacco company outside the United States.
PMI is the world’s leading international tobacco company, with six ot the world’s top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the developement and commercialization of Reduced-Risk Products (RRPs). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes. Through multidisciplinary capabalities in product development, state-of-the-art facilities, and indusrty-leading scientific substantiation, PMI aims to provide an RRP portfolio that meets a broad spectrum of adult smoker preferences and rigorous regulatory requirements.