British American Tobacco (BAT) has revealed that it is considering buying out the minority of its Brazilian unit, Souza Cruz SA, thus allowing it to take full control of the largest tobacco company in Brazil, according to a report in Bloomberg.
BAT said that it was evaluating a possible public tender offer to acquire up to all of the 24.7% of Souza Cruz shares which are not currently owned by BAT and to delist the company. Bloomberg reports that such a deal, at a price of R$26.75 per share in cash, could cost the UK-based firm more than $3 billion .
“The consummation of the offer is still subject to, inter alia, BAT’s board approval and the finalisation of an appraisal report by an independent evaluator which is required in accordance with the relevant Brazilian rules”, BAT said in a statement.
“There can be no certainty that any offer will be made”, it added.
Source: BAT / Bloomberg