British American Tobacco plc (LON:BATS) announced today that the UK’s Serious Fraud Office has opened a formal investigation into possible historic misconduct by the cigarette maker in Africa.
In a brief statement, the FTSE 100-listed company said: “As previously announced, we are investigating, through external legal advisers, allegations of misconduct. We have been co-operating with the Serious Fraud Office and British American Tobacco has been informed that the SFO has now opened a formal investigation.”
BAT said it intends to co-operate with the investigation.
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The original allegations regarding historic misconduct in Africa were made towards the end of 2015.
Earlier this year BAT said that it had created a sub-committee of its board to specifically monitor matters, as it felt it needed to "ensure active oversight of, and support for the investigation between board meetings".
The fresh blow to the group comes after shares in tobacco firms took a kicking yesterday and Friday after the US Food and Drug Administration announced tightened regulation on the industry designed to move smokers towards potentially less harmful e-cigarettes.
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However, in note to investors yesterday, JP Morgan said the market concerns seem “misplaced” and the bank thinks there is a high chance the FDA regulation will not be implemented.