According to the Financial Times on Sunday, activist investor Elliott Management Corp. has chosen to support Philip Morris International’s (PMI) $16 billion bid for Swedish Match AB. PMI is the maker of Marlboro cigarettes.
According to the Financial Times, Elliott tendered its shares in the Swedish target, moving PMI closer to the 90% mark needed for the forced redemption of remaining minority shareholders.
At the most recent count on Friday, more than 80% of shareholders have accepted PMI’s offer, and more could be processed on Monday, according to the FT, which cited persons familiar with the situation.
At 1600 GMT on Friday, the deadline for stockholders to tender shares ended.
Swedish Match, PMI, and American investor Elliott all declined to comment.
Since several months ago, Elliott has increased its ownership of Swedish Match, reaching a position of over 10% in October. According to a July report by Bloomberg News, Elliott was increasing its investment but was against a PMI sale at the initial offer price of 106 Swedish crowns ($9.73) per share.
After Swedish Match shares continually traded above the initial bid price, PMI increased its offer to 116 crowns last month. PMI initially launched its bid for the manufacturer of tobacco and oral nicotine products in May.
PMI, established in the United States, does not now conduct business in its own country, but Swedish Match has been rapidly growing there.
About half of the global market for snus, a wet, smoke-free snuff, is controlled by Swedish Match, but its tobacco-free “ZYN” nicotine pouches are one of its fastest-growing items.
