BAT’s settlement over trading in North Korea means all major sanctions and corruption cases are now dealt says US bank Jefferies bar an ongoing case in Nigeria where a provision has already been made.
The tobacco company has agreed to pay US$635mln plus interest for its activities in North Korea, which Jefferies notes had all ceased by 2017.
BAT added the settlement will have no impact on full-year guidance, with a provision of £450mln made at the halfway stage last year.
Debt is also only modestly affected to the tune of an extra 0.1 times leverage, adds the bank.
Going forward, BAT‘s only major legal case(s) with potential major payouts still pending are health claims in Canada, Jefferies says, although it points out these are potentially substantial.
'Buy' remains the investment rating with a 4,100p price target. Shares were up 1.5% today at 3,017p.