Imperial Brands to sell premium cigar businesses for €1.23bn

The businesses have been sold to investment consortia of individual investors in two distinct transactions. The deal "reinforces Imperial's focus on simplifying its business and realising value for shareholders," Imperial said.

Gemstone Investment Holding will buy Premium Cigar USA for €185m (£162m), while Allied Cigar Corporation will acquire Premium Cigar RoW for €1.04bn (£912m).

After adjusting for tax and other costs, the disposals are expected to realise net cash proceeds of around €1.09bn (£958m), which will be used to reduce debt.

Joint Interim Chief Executives Dominic Brisby and Joerg Biebernick said: "We are delighted to be able to announce the sale of Premium Cigars in the current challenging global environment. It has been a complex transaction involving joint venture partners and assets across multiple geographies and we would like to thank everyone involved for working so hard to get the deal agreed.

"This disposal reinforces our strategic ambition of becoming a leaner and more agile organisation and the proceeds will realise value for shareholders by reducing debt as part of our ongoing focus on active capital management."