British American Tobacco (BAT) offered to buy the 57.8% of Reynolds American it does not already own in a deal valued at $47bn, BAT said on Friday morning. BAT is offering Reynolds investors $24.13 cash and 0.5502 of its shares for every Reynolds share. BAT said this valued its offer at $56.50 per Reynolds share, which closed 1.9% higher at $47.17 on Thursday, giving its offer a 19% premium. BAT has a market capitalisation R1.66-trillion, or about $119bn, making it roughly the same size as Altria, which owns the Marlboro cigarette brand. Following its acquisition of Reynolds, BAT would be the world’s biggest listed cigarette company, it said. "We have been a shareholder in Reynolds since its creation in 2004 and have benefited from its growth in the US market," BAT CEO Nicandro Durante said in a statement. The deal is subject to endorsement by an independent board Reynolds is setting up and the shareholders of both groups. © BDlive 2016
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