[Intl-tobacco] Philip Morris to buy Indonesian tobacco firm for over $5bn

[robert weissman]

Philip Morris to buy Indonesian tobacco firm for over $5bn

Monday, March 14, 2005 2:17:08 AM ET
newratings.com


LONDON, March 14 (newratings.com) =E2=80=93 Philip Morris International Inc=
, the
tobacco
arm of Altria Group (MO.NYS), announced Monday that it is bidding $5
billion to buy
Indonesian tobacco company Sampoerna Tbk.

Philip Morris International said it would buy a 40% stake in the Indonesian
company, while making a tender offer of Rupiah 10,600 per share for the
remaining
stake, a price that is 20% higher than Sampoerna=E2=80=99s closing share pr=
ice
on March 10.
Sampoerna=E2=80=99s share price has appreciated 16% after the news. The tot=
al
value of the
deal, expected to be completed in 90 days, is estimated to be $5.2 billion,
including debt worth $160 million. "Our investment in Sampoerna is a great
opportunity to significantly expand our business in the world's
fifth-largest, and
growing cigarette market," Philip Morris International=E2=80=99s chief
executive, Andre
Calantzopoulos, said in a statement.