JT Group Completes Deal for Vector Group
TOKYO — Japan Tobacco Inc. (JT Group) completed its acquisition of Vector Group Ltd. (VGR) on Oct. 7, following a tender offer initially announced in August of this year.
Under the terms of the deal, JT Group acquired all outstanding shares of Vector Group common stock for $15 per share in cash, which represents a premium of 29.9% over the 60-day volume-weighted average share price, or approximately $2.4 billion of total equity value.
The conditions of the offer having been satisfied, JT Group accepted all such tendered shares, and, following a statutory merger, VGR became a wholly owned subsidiary of the JT Group and was delisted from the New York Stock Exchange.
The tender offer was subject to approval under U.S. and Serbian antitrust laws, the tender of more than 50% of VGR's outstanding common stock and satisfaction of other customary closing conditions. Any remaining shares of common stock of VGR that were not tendered in the initial offer were, upon the completion of the transaction, canceled and converted into the right to receive the same consideration payable in the tender offer.
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In line with its tobacco business strategy, JT Group stated it believes the acquisition will improve its return-on-investment in combustibles by significantly increasing its presence and distribution network in the United States, the second largest tobacco market in net sales and one of the most profitable.
Currently, the transaction is not expected to have any material impact on the Group's consolidated performance for the fiscal year ending on Dec. 31.
Tokyo-based Japan Tobacco Inc. employs approximately 53,000 team members and operates 62 factories throughout the world, operating in three business segments: tobacco, pharmaceutical and processed food. Within the tobacco business, products are sold in more than 130 markets. Its flagship brands include Winston, Camel, MEVIUS and LD.