Press releaseDec 17, 1997
Swedish Match enters into match business in India
Swedish Match has entered into an
agreement for the acquisition - at a cost of approxi-mately 7
MUSD - of a controlling interest in two Singaporean investment
companies, owned by the Jatia Group, which will give Swedish
Match joint management control over Wimco Limited. The two
investment companies own, in aggregate, 38.6% of the paid up
equity capital of Wimco, and are the largest shareholders in that
company.
According to Wimco’s latest
published annual accounts (for the year ended March 31, 1997),
the company’s turnover amounted to Rs 2.079 million (c. MSEK
450) and Profit after tax of Rs 93 million (c. MSEK 20). Swedish
Match and the Jatia Group will make a joint public offer for up
to 20% of the shares of Wimco to the public shareholders, in
accordance with the Securities and Exchange Board of India
(Substantial Acquisition of Shares and Take-overs) Regulation,
1997.
The agreement and the public offer
are based on a price of Rs 35 per share, corresponding to a total
offer of slightly more than 5 MUSD. A formal public announcement
to this effect has been made on December 17th, 1997.
The aim of the joint venture is
the development, on the Indian market, of Swedish Match´s
product range, by bringing together Wimco’s existing market
presence, the local knowledge and experience of the Indian joint
venture partners and the product know-how of Swedish Match.
This venture represents the latest
step in Swedish Match’s endeavours to establish itself on
the World’s largest fast-growing emerging markets.
The Wimco agreement has particular
historic significance for Swedish Match, in that Wimco was
originally founded by Swedish Match in 1923, and remained under
its control until 1991, when its interest was divested to the
present joint venture partner.
Wimco is a public company, listed
on the Bombay Stock Exchange and other Indian stock exchanges. It
is the leading manufacturer and distributor of matches in India
and, with a production capacity of some 5 billion match boxes, is
the largest single match manufacturing company in the world. It
is the only fully merchandised match producer in India, and also
has one of the most extensive distribution networks for consumer
products in India.
Swedish Match is a company
specialised in Matches, Lighters and Tobacco products with a
turnover of approximately MSEK 7.500. Swedish Match is a listed
company both at the Stockholm Stock Exchange and at the Nasdaq
Stock Exchange, in New York.
For additional information, please
contact:
Bo Aulin, Senior Vice President,
Corporate Affairs Office: 08-658 03 64
Mobile: 070-558 03 64
Residence: 08-768 45 22
Göran Ekdahl, Vice President,
Corporate Communications Office: 08-658 01 62
Mobile: 070-858 11 62
Residence: 08-768 38 22
Boel Sundvall, Vice President,
Investor Relations Office: 08-658 01 73
Mobile: 070-651 39 09
Residence: 08-25 87 12
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