The price offered per share was COP 11,398.13 (US $4.878817). GWP has purchased 96.65% for a value of COP 700.007 billion (US $299.6 million). The offer valued 100% of Coltabaco shares at COP 724.237 billion (US $310 million).
“We now have the opportunity to bring together the strengths of PMI, which has four brands among the top ten selling cigarette brands in the world, and COLTABACO which leads the Colombian market and has a strong, well developed portfolio.”
"Our investment in COLTABACO is a great opportunity to significantly expand our business in Colombia and in Latin America," said Andre Calantzopoulos, President and Chief Executive Officer of PMI. "Our investment reflects the confidence we have in the future of Colombia, its economy and its tobacco industry. It positions us for profitable future growth by partnering with a well managed and successful company that has outstanding people, and an excellent manufacturing and distribution infrastructure."
COLTABACO was founded in 1919 and is the largest tobacco company in Colombia and the largest independent tobacco company in Latin America. COLTABACO produces and markets leading cigarette brands in the local market including Boston, Green, and Piel Roja, and has a total estimated share of 48% of the 20 billion unit domestic cigarette market. Colombia is the fourth largest cigarette market in Latin America.
"We look forward to a bright future in Colombia with COLTABACO. It is a great company with a strong heritage," said Miroslaw Zielinski, President of the Latin America and Canada Region of PMI. "We now have the opportunity to bring together the strengths of PMI, which has four brands among the top ten selling cigarette brands in the world, and COLTABACO which leads the Colombian market and has a strong, well developed portfolio."
Highlights of the transaction
In September 2004, GWP C.V. (an affiliate of Philip Morris International Inc.), executed sale and purchase agreements with a group of shareholders representing 51.8% of outstanding shares. Under the agreement GWP further agreed to make a public tender offer to acquire up to 100% of COLTABACO shares at a price per share of US $4.878817, representing a total of US $310 million.
Philip Morris International Inc.
PMI whose business is headquartered in Lausanne, Switzerland, held a 14.5% share of the international cigarette market in 2004. Its brands, led by Marlboro and L&M, are manufactured in more than 50 factories around the world and sold in over 160 countries. PMI is a subsidiary of Altria Group, Inc. More information is available at www.philipmorrisinternational.com.
Philip Morris International Inc. 2004 results: Net revenues: US $39.5 billion Income: US $6.6 billion Unit volume: 761.4 billion Worldwide market share 14.5% COLTABACO headquarters are based in Medellin, Colombia COLTABACO 2004 estimated results, domestic tobacco: Net revenues: US $100.6 million Operating income: US $12.4 million Unit volume: 10.4 billion (exchange rate of COP 2,389/1 USD) Share of total Colombian market: 48%
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