Swedish Match long-term shareholder Framtiden not tendering shares to Philip Morris

Nov 1 (Reuters) – Framtiden Partnerships, a shareholder of Swedish Match AB (SWMA.ST) for practically 20 years, stated it is not going to settle for Marlboro maker Philip Morris Worldwide Inc’s (PM.N) increased supply of 116 Swedish crowns ($10.53) per share for the Swedish tobacco and nicotine merchandise maker.

Framtiden, which owns virtually 1% of shares in Swedish Match, stated it is not going to tender its shares earlier than Friday’s deadline and hopes the $16 billion supply will fail. The agency has been vocal in its opinion that Swedish Match is healthier off as an impartial firm.

Dan Juran, managing member of Framtiden, beforehand said that he estimates Swedish Match to be price near 200 Swedish crowns per share, far increased than the present supply.

Framtiden stated it can urge Swedish Match administration to provoke a share buyback and doubtlessly a particular dividend if the deal doesn’t undergo.

“As we wrote in our white paper, there may be unimaginable long-term worth on this asset, however we additionally suppose that there’s nice worth to be realised within the quick time period as effectively”, stated Chris Anderson, a accomplice in Framtiden, including {that a} deliberate U.S cigar enterprise spin-off will even present extra shareholder worth.

PMI launched the bid to accumulate Swedish Match in Might. In October the Swiss firm elevated its supply value from 106 crowns to 116 crowns after its shares traded constantly over the unique bid for months.

With only some days to go till the deadline to tender its shares, it’s nonetheless unknown what activist investor Elliott Administration, who raised its stake in Swedish Match to over 10% final week, plans to do. Bloomberg Information reported in July, citing sources, that Elliott was planning to oppose the deal.

($1 = 11.0120 Swedish crowns)

Reporting by Marie Mannes; Modifying by Chizu Nomiyama, Jonathan Oatis and Mark Porter

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