British American Tobacco finally agree sale of Russian and Belarusian divisions
- Sale comes 18 months after the firm announced its decision to leave
- Firm will sell businesses to a consortium led by its Russian management team
British American Tobacco has finally revealed its decision to sell its Russian and Belarusian businesses after 18 months since the initial announcement.
The tobacco firm will be selling these businesses to a consortium that is led by its Russian management team.
The completion of the transaction is expected to take place within the next month, pending the fulfillment of certain conditions.
The tobacco firm said it will sell the businesses to a consortium that will be led by its Russian management team
Once the sale is completed, the business will be referred to as the ITMS Group.
In a statement, BAT stated: ‘Throughout the transfer process, one of our main priorities has been the welfare of our colleagues in Russia and Belarus.
‘As part of the agreement, their employment terms will remain comparable to their existing BAT terms for at least two years after the completion of the sale.’
BAT employs over 50,000 individuals, with its operations in Russia including a head office in Moscow, 75 regional offices, and a manufacturing facility in St. Petersburg. It also maintains an office in Belarus.
The company’s Russian and Belarusian division contributed approximately 2.7% of the group’s revenue and about 2.5% of its adjusted profit as of the end of June.
Towards the end of last month, Lucky Strike and Rothmans’ owner reported strong profit growth fueled by price increases and the growing demand for tobacco alternatives.
BAT’s reported basis profit from operations increased by 61.4% to £5.94 billion for the six months ending on June 30.
This significant profit growth also reflects comparisons with the previous year when BAT incurred a £957 million impairment charge related to the transfer of its Russian business.
British American Tobacco shares were down 0.02% to 2,583p in early afternoon trading on Thursday.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
