BOSNIA
British American Tobacco (BAT) has reached a principle agreement with Bosnian holding firm Fabrika Duhana Sarajevo (FDS) to acquire its tobacco assets.
Austria’s CID Adriatic Investments, using funding provided by BAT had bought a 78.7% stake in FDS for the total of 84.3 million Bosnian marka ($46.3 million). It first bought a 39.9% stake from the regional government in September and then in December an additional 38.8% stake from small shareholders and funds.
The transaction is expected to be completed in the first half of this year, following FDS shareholder approval vote and the relevant regulatory approvals.“BAT will acquire all FDS tobacco brands and retail business [Tobacco Press shops] from FDS,” said a statement released by the two companies.
“BAT will also enter into a contract manufacturing agreement with FDS for the continued production of the acquired brands by FDS in Sarajevo.” FDS has banking and real estate operations as well as tobacco interests. CID will continue to develop the non-tobacco parts of FDS independently.