(Reuters) -Activist investor Elliott Administration Corp has determined to again Marlboro-maker Philip Morris Worldwide’s (PMI) $16 billion provide for Swedish Match AB, the Monetary Instances reported on Sunday.
Elliott has tendered its shares within the Swedish goal, the FT stated, bringing PMI nearer to the 90% threshold required for pressured redemption of remaining minority stakeholders.
PMI’s provide had obtained greater than 80% shareholder acceptance on the newest rely on Friday and extra could possibly be processed on Monday, the FT reported, citing sources conversant in the matter.
The deadline for shareholders to tender shares expired on Friday at 1600 GMT.
U.S. investor Elliott, PMI and Swedish Match declined to remark.
Elliott has been constructing its stake in Swedish Match for months, reaching greater than 10% in October. Bloomberg Information reported in July, that Elliott was constructing a stake however was against a PMI deal on the unique provide of 106 Swedish crowns ($9.73) per share.
PMI launched its bid for the maker of tobacco and oral nicotine merchandise in Could earlier than elevating the provide to 116 crowns final month after Swedish Match shares constantly traded above the unique bid value.
United States-based PMI doesn’t presently commerce in its house market, however Swedish Match has been increasing quick in America.
Swedish Match controls about half the world’s marketplace for snus – a moist, smoke-free snuff – however one in every of its fastest-growing merchandise is its tobacco-free “ZYN” nicotine pouches.
($1 = 10.8952 Swedish crowns)
Reporting by Maria Ponnezhath in Bengaluru and Marie Mannes in GdanskEditing by David Goodman
