JT’s Mighty deal completed
Japan Tobacco has been considered an unlikely acquisition target because of the Japanese government’s blocking stake. But there has been talk about the government selling of some of its share as a way to help fund Japanese post-Tsunami recovery.
Japan Tobacco Inc. said yesterday that the JT group had completed the acquisition of assets related to the tobacco business of the Philippines-based Mighty Corporation.
The agreement to acquire the assets was announced by the company on August 22.
‘The acquisition is in line with JT Group’s geographic expansion for sustainable growth,’ JT said in a note posted on its website.
‘It also provides a nationwide distribution network in the Philippines and strengthens the group’s brand portfolio with the addition of local brands such as “Mighty” and “Marvels”.
‘The total amount of the acquired assets is PHP46.8 billion (approximately US$936 million).’
JT said the transaction would not have any material impact on the group’s consolidated performance for the fiscal year 2017.
Meanwhile, a GMA News story published today had it that Mighty Corp. had said previously that it intended to use the proceeds from the deal to settle its tax liabilities amounting to P25billion, other fees, and value-added tax.
