British American Tobacco bought FDS?

At today's auction on the Sarajevo Stock Exchange, CID Adriatic Investments GmbH (CID) submitted the best offer for shares of Fabrika duhana Sarajevo d.d. (FDS) owned by the Federation of Bosnia and Herzegovina. CID Adriatic Investments GmbH is an Austrian investment company, and the funds for the transaction were secured for CID by British American Tobacco (BAT).

The offer for 511,478 shares, representing 39.9058% of the total FDS shares, amounts to 83.5 KM per share, totaling 42,708,413 KM. The transfer of shares is expected to be concluded in accordance with the requirements of the Sarajevo Stock Exchange, and CID will be registered as the owner of the shares in the coming days.

The price of 83.5 KM per share represents a 96% premium over the share price on 09/28/2015 (42.57 KM), one day before the public announcement that the Government of the Federation of BiH intended to sell its FDS shares. The price of 83.5 KM per share represents a 60% premium over the share price (52.12 KM) on 07/22/2016, one day before the Government's decision to sell shares through an auction. In accordance with legal obligations, CID will submit a mandatory takeover bid for the remaining FDS shares. The offer will contain the same price paid to the Government of the Federation of BiH: 83.5 KM per share.

The takeover bid notice will be submitted to the Securities Commission of the Federation of BiH in accordance with positive legal regulations. The financing for the takeover bid will also be provided by British American Tobacco.

- Upon successful conclusion of the takeover bid, CID will enter into exclusive negotiations with British American Tobacco regarding the sale of a part of FDS's tobacco business to British American Tobacco. CID will continue to work with FDS management on developing other parts of FDS's business. The agreement between CID and British American Tobacco will be subject to a vote by FDS shareholders, due diligence by British American Tobacco, and all regulations and regulatory approvals. CID believes that a potential purchase of FDS's tobacco business by British American Tobacco would provide significantly better opportunities for the future operations of FDS's tobacco segment compared to those it could achieve as an independent company - it was announced.

 

- British American Tobacco (BAT) confirms that it has secured financing for CID Adriatic Investments GmbH (CID) to purchase 39.9058% of the shares of Fabrika Duhana Sarajevo (FDS). Following the successful completion of CID's takeover bid for the remaining FDS shares, British American Tobacco will enter into exclusive negotiations with CID Adriatic Investments GmbH regarding the potential acquisition of a part of FDS's tobacco business. Any agreement on the purchase of a part of the tobacco business will be subject to due diligence, as well as obtaining all necessary regulatory approvals - it is further stated.