logo
  

Swedish Match Shareholder Opposes Proposed Takeover By Philip Morris

Framtiden Management Co. LLC, a shareholder of Swedish Match AB (SWMAY.PK), announced Wednesday its opposition to the proposed takeover of the Swedish tobacco company by Philip Morris International, Inc. (PM).

According to Framtiden, a long-term Swedish Match shareholder since 2003, the acquisition offer of 106 Swedish Kronor per share deeply undervalues the company, and that it would not support the proposed transaction.

The company said the offer price is significantly below Swedish Match's intrinsic value per share, which Framtiden estimates at close to 200 kronor per share.

The Framtiden Partnerships own over 14.5 million shares representing about 1% of outstanding shares.

It was in May that Philip Morris' affiliate Philip Morris Holland Holdings B.V. has issued a recommended cash offer to the shareholders of Swedish Match worth around 161.2 billion kronor, corresponding to approximately $16.0 billion.

Dan Juran, Managing Member of The Framtiden Partnerships, said, "Investors may be tempted by the short-term premium, especially during a period of market declines, but I believe that Swedish Match in 2022 may be in the rarified air of Coca-Cola in the 1980's or Philip Morris itself in the 1950's. Those companies compounded earnings at a superior rate for many years, and shareholders who stuck with them were rewarded mightily. We believe sticking with Swedish Match is likely to prove far more remunerative to shareholders over time than cashing out."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Elon Musk, who recently took Twitter Inc. private in a $44-billion deal, accused Apple Inc. of threatening to block the social media platform from its app store without giving the reason. In a series of tweets on Monday, the Tesla founder and CEO also said the tech giant had stopped advertising on Twitter, and that it was pressuring the firm over content moderation demands. Payments platform Paysafe has inked a partnership deal with Richard Branson's Virgin Voyages to enable travelers to speedily and securely make online payments for reserving next cruise booking. Paysafe's travel solution will also help mitigate all payment risks for travelers. Shares of easyJet plc were losing around 4 percent in the morning trading in London after the British low-cost airline reported a loss in its fiscal 2022. However, the loss was narrower than last year with strong growth in revenues as demand returned. Looking forward, easyJet projects first-quarter load factor growth of approximately 10 percentage points year-over-year.
Follow RTT