Summary
Philip Morris International Inc. (PM) filed an 8-K on October 2, 2008, reporting on the progress of its takeover bid for Rothmans Inc. The company, through its indirect wholly-owned subsidiary, the Offeror, has successfully acquired approximately 93.8% of Rothmans' outstanding common shares as of September 30, 2008. This significant stake was acquired at a price of CDN$30.00 per share in cash, as originally outlined in the Support Agreement dated July 31, 2008. The overwhelming acceptance of the offer indicates strong support from Rothmans shareholders. Philip Morris International now intends to proceed with a compulsory acquisition process under Canadian securities laws to acquire the remaining shares, aiming to fully consolidate Rothmans' operations. This move signifies a major step towards the complete integration of Rothmans, likely to streamline operations and potentially unlock further value for PM shareholders.
Key Highlights
- 1Philip Morris International's subsidiary has acquired 93.8% of Rothmans Inc. common shares as of September 30, 2008.
- 2The acquisition price was CDN$30.00 per share in cash.
- 3The company plans to complete the acquisition of remaining Rothmans shares via compulsory acquisition under Canadian law.
- 4This filing follows an initial Support Agreement entered into on July 31, 2008.
- 5The acquisition demonstrates significant shareholder acceptance of the takeover bid.
- 6The move is expected to lead to the full consolidation of Rothmans' operations within Philip Morris International.