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Imperial Brands PLC - Update sale of Worldwide Premium Cigar Businesses

RNS Number : 2655A
Imperial Brands PLC
28 September 2020
 

IMPERIAL BRANDS PLC

 

Legal Entity Identifier (LEI) No. 549300DFVPOB67JL3A42

 

28 September 2020

 

Imperial Brands PLC provides an update on sale of its Worldwide Premium Cigar Businesses

 

As previously announced in April, Imperial Brands plc ("Imperial") agreed the sale of its worldwide premium cigar businesses ("Premium Cigars") for a total consideration of €1,225 million, of which net cash proceeds of €1.1 billion will be used to reduce debt. Given the challenges caused by COVID, Imperial has agreed to complete both transactions on 29 October 2020, slightly delayed from the original timetable.

 

Gemstone Investment Holding Ltd and Allied Cigar Corporation, S.L. (the "purchasers") have made a non-refundable down payment of €91.7 million to Imperial. In addition, the purchasers have agreed to pay a further non-refundable down payment of approximately €85 million to Imperial by 7 October.

 

Imperial has also agreed to provide a six-month vendor loan at completion of up to €250 million while the purchasers finalise long-term financing arrangements. All other terms remain in line with the announcement of 27 April.

 

 

ENDS

 

Investor Contacts

Media Contacts

Peter Durman

+44 (0)7970 328 903

Alex Parsons

+44 (0)7967 467 241

Matt Sharff

+44 (0)7964 110 921

Simon Evans

+44 (0)7967 467 684

James King

+44 (0)7581 052 880



 

Cautionary Statement

Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company. This announcement has been prepared for, and only for the members of the Company, as a body, and no other persons. The Company, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

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