JT taking over in Ethiopia

Japan Tobacco Inc. said today that the JT group was about to sign a share purchase agreement of US$434 million with the Ethiopian government for about 30 percent of the shares of National Tobacco Enterprise Share Company (NTE).

This purchase will bring the group’s ownership to more than 70 percent of NTE shares.

The transaction was expected to be completed ‘later today’.

“This significant increase in our ownership of NTE shares reaffirms our strong belief in the company and Ethiopia as an increasingly important place to do business in Africa,” said Eddy Pirard, president and CEO of Japan Tobacco International.

“By combining our international and newly acquired local expertise, we are confident that we can take NTE to a new level of growth.”

JT said in a note posted on its website that since acquiring 40 percent of NTE’s shares last year, the JT group, as the largest shareholder, has been contributing to NTE’s growth by leveraging its international experience in the tobacco business.

“We would like to express our sincere gratitude towards the government for their trust and for their efficient collaboration in finalizing this transaction,” said Pirard.