HALISTER: BAT Agrees to Buy Rest of Reynolds for About $59.64/Share

BAT Agrees to Buy Rest of Reynolds for About $59.64/Share

(Bloomberg) -- BAT agrees to buy the remaining 57.8% of Reynolds American it does not already own in a recommended deal.
  • Reynolds shareholders get for each Reynolds share $29.44 in cash and 0.5260 BAT ordinary shares which shall be represented by BAT ADRs listed on NYSE
    • Based on BAT share price and the USD-GBP rate as at Jan. 16, implies a total current value of $59.64/Reynolds share and a total current value of ~$49.4b for the 57.8% of Reynolds not already owned by BAT
    • Premium of 26% over close price of Reynolds common stock on Oct. 20
  • Cash component to be financed by combination of existing cash resources, new bank credit lines, issuance of new bonds
    • A $25b acquisition facility has been entered into with a syndicate of banks to provide financing certainty
  • Deal unanimously approved by transaction committee of independent Reynolds directors established to evaluate the offer, boards of Reynolds and BAT.
Link to Statement:Link
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
BATS LN (British American Tobacco PLC)
RAI US (Reynolds American Inc)

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