• May 26, 2024

Mighty in talks over future

 Mighty in talks over future

The LT Group and British American Tobacco are reportedly in talks with the Wongchuking family about the acquisition of the Bulacan-based cigarette maker Mighty Corp, according to a story in the Philippine Star relayed by the TMA.

Some industry observers believe that such an acquisition could bail out Mighty from a 36.5 billion-peso (US$734.2 million) tax evasion lawsuit.

Previous reports claimed that other tobacco firms, including Associated Anglo-American Tobacco and Japan Tobacco Inc, had expressed interest in acquiring Mighty.

An unnamed source said Mighty was looking to sell only its assets, such as machinery and other equipment, while retaining its sprawling nine-hectare property in Bulacan, which it could lease to tenants.

A final decision is expected in June.

The company has not been able to import raw materials since a Board-of-Customs order on March 14 and it is now said to be relying on its inventory, which running down.

Meanwhile, a number of retailers are said to have stopped selling the company’s products.

The Philippine Amalgamated Supermarkets Association was quoted as saying that some retailers had begun taking Mighty products from their shelves amid concerns that they could be cited for selling cigarette packs carrying counterfeit or fake tax stamps, should the allegations against Mighty be proven.