bat-buys-85-of-indonesian-cigarette-maker

BAT buys 85% of Indonesian cigarette maker

British American Tobacco agrees to buy the Rajawali GroupÆs 56% holding in PT Bentoel at a 20% premium as part of a wider $494 million deal.

British American Tobacco BAT said yesterday that it has paid $494 million for an 85% stake in PT Bentoel Internasional Investama, Indonesia's fourth biggest cigarette maker.

The UK-based company paid the equivalent of Rp873 nine US cents per share, which represents a 20% premium over Bentoel's June 15 closing price of Rp730. Alongside other sellers, Bentoel's majority shareholder, the Rajawali Group, agreed to sell its 56% holding. The investment group, whose interests span across mining, plantations and property, bought its stake in Bentoel back in 1991.

A public tender offer for the remaining shares, which is mandatory, will be announced soon and is expected to be completed by the end of August. If all...

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