logo-loader
Imperial Brands

Imperial Brands looking to sell its premium cigar business as part of ongoing divestment programme

The FTSE 100-listed tobacco firm said whilst various options are being evaluated “there can be no certainty that any transaction will take place or as to the terms of any such transaction”

Cigar smoker
Imperial Brands launched its divestment programme in May 2018 and expected to generate proceeds of up to £2bn by May 2020, if not earlier

Imperial Brands PLC (LON:IMB) has confirmed its intention to sell its worldwide premium cigar business as part of an ongoing divestment programme to raise up to £2bn.

The FTSE 100-listed tobacco group, which is being advised by AZ Capital with respect to the sale of Premium Cigars, said whilst various options are being evaluated “there can be no certainty that any transaction will take place or as to the terms of any such transaction.”

READ: Imperial Brands upbeat on revenue outlook as myblu gains traction

It pointed out: “Premium Cigars has performed well over a number of years with good revenue and profit growth; however, it is a unique luxury business with a different consumer base and route to market relative to Imperial's other businesses.”

The company said the sale of the business “provides an attractive opportunity to realise shareholder value” and added that further announcements will be made as appropriate in due course.

Imperial Brands launched its divestment programme in May 2018 and expected to generate proceeds of up to £2bn by May 2020, if not earlier.

So far the group has realised £280mln from the sale of a portfolio of other tobacco products in the USA and the disposal of a further 9.99% stake in Spainis distribution group Logista.

It said significant progress has been made with a number of other divestment opportunities, with the priority of maximising shareholder returns, although recognising that tobacco valuations have come under some pressure in the last 12 months, the group added, assets will be sold only if they will realise appropriate value.

The divestment programme is part of an ongoing simplification agenda and will release capital to pay down debt and, where appropriate, invest in its growth agenda, Imperial Brands added.

In afternoon trading, shares in Imperial Brands edged 0.3% higher to 2,435p.

Quick facts: Imperial Brands

Price: £21.02

Market: LSE
Market Cap: £20.05 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Brickability Group PLC looks to raise £57mln as it lists in London

Brickability Group PLC's chairman John Richards chats to Proactive's Andrew Scott ahead of the firm's listing next week in London. It plans to raise £57mln as part of the initial public offering, valuing it at around £150mln. The Bridgend-based company, which counts Redrow plc (LON:RRW)...

2 hours, 38 minutes ago

RNS

Transaction in Own Shares

22 hours, 28 minutes ago

Director Declaration

5 days, 22 hours ago

Transaction in Own Shares

6 days, 23 hours ago

Transaction in Own Shares

1 week, 1 day ago

Transaction in Own Shares

1 week, 2 days ago

Transaction in Own Shares

1 week, 5 days ago

Transaction in Own Shares

1 week, 6 days ago

Transaction in Own Shares

2 weeks, 5 days ago

2 min read