[Intl-tobacco] Colombia: PM completes Coltabaco takeover

[Robert Weissman]

Philip Morris unit buys Colombia co. for $300 mln
Mon Apr 25, 2005 01:39 PM ET

(Adds expansion in developing world, Indonesian bid)

BOGOTA, Colombia, April 25 (Reuters) - A Dutch unit of Philip Morris has
bought 96.65 percent of Colombia's biggest cigarette manufacturer,
Coltabaco (CCT.CN: Quote
<http://www.investor.reuters.com/FullQuote.aspx?ticker=CCT.CN&target=%2fstocks%2fquickinfo%2ffullquote>,
Profile
<http://www.investor.reuters.com/StockOverview.aspx?ticker=CCT.CN&target=%2fstocks%2fquickinfo%2fstockoverview>,
Research
<http://www.investor.reuters.com/StockReports.aspx?ticker=CCT.CN>) , for
$299.6 million, the Colombian Stock Exchange said on Monday.

Top shareholders in Coltabaco -- the largest Latin American cigarette
maker not controlled by Philip Morris or its competitor British American
Tobacco (BATS.L: Quote
<http://www.investor.reuters.com/FullQuote.aspx?ticker=BATS.L&target=%2fstocks%2fquickinfo%2ffullquote>,
Profile
<http://www.investor.reuters.com/StockOverview.aspx?ticker=BATS.L&target=%2fstocks%2fquickinfo%2fstockoverview>,
Research
<http://www.investor.reuters.com/StockReports.aspx?ticker=BATS.L>) --
had recommended acceptance of the public offer, which was announced last
August.

Philip Morris, controlled by Altria Inc. (MO.N: Quote
<http://www.investor.reuters.com/FullQuote.aspx?ticker=MO.N&target=%2fstocks%2fquickinfo%2ffullquote>,
Profile
<http://www.investor.reuters.com/StockOverview.aspx?ticker=MO.N&target=%2fstocks%2fquickinfo%2fstockoverview>,
Research
<http://www.investor.reuters.com/StockReports.aspx?ticker=MO.N>) , is
seeking to grow in developing countries. The company is also bidding to
buy Indonesian tobacco company PT Hanjaya Mandala Sampoerna Tbk
(HMSP.JK: Quote
<http://www.investor.reuters.com/FullQuote.aspx?ticker=HMSP.JK&target=%2fstocks%2fquickinfo%2ffullquote>,
Profile
<http://www.investor.reuters.com/StockOverview.aspx?ticker=HMSP.JK&target=%2fstocks%2fquickinfo%2fstockoverview>,
Research
<http://www.investor.reuters.com/StockReports.aspx?ticker=HMSP.JK>) for
$5 billion.

The Colombian government has approved the acquisition of Coltabaco,
which was part of Colombia's largest conglomerate, Grupo Empresarial
Antioqueno.

Philip Morris' Dutch unit, GWP C.V., had offered to buy up to 100
percent of Coltabaco at $4.88 per share. Coltabaco shares closed on the
Colombian Stock Exchange at 11,100 pesos ($4.75) on April 21.

($1 = 2,336 pesos)

-------------------

April 25, 2005 04:17 PM US Eastern Timezone

*Philip Morris International Inc. Announces Successful Public Tender
Offer for Coltabaco S.A.*

LAUSANNE, Switzerland--(BUSINESS WIRE)--April 25, 2005--GWP C.V., an
affiliate of Philip Morris International Inc. (PMI), acquired 96.65% of
the outstanding shares of Compania Colombiana de Tabaco S.A.
("COLTABACO") in a Public Tender Offer completed today.

The price offered per share was COP 11,398.13 (US $4.878817). GWP has
purchased 96.65% for a value of COP 700.007 billion (US $299.6 million).
The offer valued 100% of Coltabaco shares at COP 724.237 billion (US
$310 million).

"Our investment in COLTABACO is a great opportunity to significantly
expand our business in Colombia and in Latin America," said Andre
Calantzopoulos, President and Chief Executive Officer of PMI. "Our
investment reflects the confidence we have in the future of Colombia,
its economy and its tobacco industry. It positions us for profitable
future growth by partnering with a well managed and successful company
that has outstanding people, and an excellent manufacturing and
distribution infrastructure."

COLTABACO was founded in 1919 and is the largest tobacco company in
Colombia and the largest independent tobacco company in Latin America.
COLTABACO produces and markets leading cigarette brands in the local
market including Boston, Green, and Piel Roja, and has a total estimated
share of 48% of the 20 billion unit domestic cigarette market. Colombia
is the fourth largest cigarette market in Latin America.

"We look forward to a bright future in Colombia with COLTABACO. It is a
great company with a strong heritage," said Miroslaw Zielinski,
President of the Latin America and Canada Region of PMI. "We now have
the opportunity to bring together the strengths of PMI, which has four
brands among the top ten selling cigarette brands in the world, and
COLTABACO which leads the Colombian market and has a strong, well
developed portfolio."

Highlights of the transaction

In September 2004, GWP C.V. (an affiliate of Philip Morris International
Inc.), executed sale and purchase agreements with a group of
shareholders representing 51.8% of outstanding shares. Under the
agreement GWP further agreed to make a public tender offer to acquire up
to 100% of COLTABACO shares at a price per share of US $4.878817,
representing a total of US $310 million.

Philip Morris International Inc.

PMI whose business is headquartered in Lausanne, Switzerland, held a
14.5% share of the international cigarette market in 2004. Its brands,
led by Marlboro and L&M, are manufactured in more than 50 factories
around the world and sold in over 160 countries. PMI is a subsidiary of
Altria Group, Inc. More information is available at
www.philipmorrisinternational.com
<http://www.philipmorrisinternational.com>.