As previously announced, the new Scandinavian Tobacco Group (STG) formed October 1, 2010, has a financial strategy stipulating a target net debt of two to three times EBITA. STG has now secured external financing in line with its financial strategy, and as a consequence of this, STG has made a repayment of loans of 170 MEUR to Swedish Match. The loans were given from Swedish Match to STG in connection with the formation of the new company and include the 30 MEUR cash consideration as compensation for the relative differences in enterprise values of the businesses contributed from the former Scandinavian Tobacco Group and Swedish Match. Final purchase price adjustments are expected to be determined and settled in the first quarter of 2011.
For further information, please contact:
Lars Dahlgren, President and Chief Executive Officer
Office +46 8 658 0441, Mobile +46 70 958 0441
Joakim Tilly, Chief Financial Officer
Office +46 8 658 0213, Mobile +46 76 860 9597
Emmett Harrison, Senior Vice President Corporate Communications and Sustainability
Office +46 8 658 0173, Mobile +46 70 938 0173
The character of this information is such that it shall be disclosed by Swedish Match AB (publ) in accordance with the Financial Instruments Trading Act. The information was disclosed to the media on 29 October, 2010 at 2.00 p.m. (CET).
Swedish Match develops, manufactures and sells market-leading brands in product areas Snus and snuff, Other tobacco products (US mass market cigars and chewing tobacco) and Lights. The Group sells products across the globe, with production units in seven countries. The Group’s global operations generated sales of 14,351 MSEK for the twelve month period ending September 30, 2010. The Swedish Match share is listed on the NASDAQ OMX Stockholm (SWMA).
Swedish Match AB (publ), Box 7179, SE-103 88 Stockholm
Visiting address: Västra Trädgårdsgatan 15, Telephone: +46 8 658 02 00
Corporate Identity Number: 556015-0756
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