British American Tobacco makes offer for Souza Cruz

British American Tobacco’s Brazilian-controlled company has launched a public tender offer to buy up to all of the 24.7% of Souza Cruz it does not already own, and to delist the group from the stock exchange.

The news comes after the Brazilian regulator approved BAT’s offering documentation. The offer values Souza at 27.62 Brazilian reals, to be paid in cash, reduced by the amount of any dividends and interest on own capital declared by Souza in the period prior to the completion of the offer.

BAT said the price, if adjusted for dividends and interest on own capital, is around 37.1% higher than the volume-weighted average of the shares over three months prior to the closing price on the day before the announcement of BAT’s possible offer on 23 February.

The offer is subject to the approval of two-thirds of the holders of the free float.

At 1325 BST, BAT shares were down 0.9% at 3,438.50p.