Philip Morris Sweetens Takeover Offer For Swedish Match

Philip Morris International Inc. (PM) announced Wednesday that its affiliate Philip Morris Holland Holdings B.V. has increased the price in its recommended cash offer to the shareholders of Swedish Match AB (SWMAY.PK,SWMAF.PK) to 116 Swedish kronor per share.

The total value of the revised offer amounts to approximately 176.4 billion kronor.

The company said it will not further increase the price in the offer.

It was on May 11 that Philip Morris Holland announced a recommended cash offer of 106 kronor per share to Swedish Match. The total value of the offer amounted to around 161.2 billion kronor, corresponding to around $16.0 billion.

In early October, Philip Morris announced that the acceptance period was further extended until November 4.

The revised price per share represents a premium of 52.5 percent compared to the closing share price of SEK 76.06 on May 9.

Jacek Olczak, Chief Executive Officer of PMI, said, "The price in the revised offer primarily reflects the higher net value to PMI related to the portion of Swedish Match's cash flows that are generated in U.S. dollars, given currency movements since the initial offer was announced in May."

Shareholders who have already tendered their shares at 106 kronor in cash per share will automatically benefit from the increased price of 116 kronor in cash per share without taking any further action.

The revised offer retains a 90 percent acceptance condition, which is critical to capture the full potential of the combination.

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