U.S.-based tobacco company Philip Morris International (PMI) entered into an agreement on the acquisition of a 20% stake in Megapolis Group, the largest wholesale seller of tobacco goods in Russia, PMI informed.
The base purchase price of $750 million excludes an additional payment of up to $100 million contingent on Megapolis's ability to meet certain performance targets.
The transaction is expected to be completed before the end of this year.
It should be noted that Japan Tobacco International (JTI), another Japanese cigarette producer, also arranged for the purchase of a 20% stake in Megapolis for $750 million.
Billionaire Igor Kesaev's tobacco distributor Megapolis accounts for ca. 70% of Russia's cigarette market. The company employs 15 thousand people. Megapolis has exclusive contracts with Japan's Tobacco International and U.S.-based Philip Morris International.
AK&M "M&A Market"
"AK&M", 04.12.2013 17:05