Imperial Delays Sale of Cigar Business

Imperial Brands will complete the sale of its premium cigar business slightly later than originally envisioned. Given the challenges caused by Covid-19, both transactions will now be finalized on Oct. 29, 2020, the company said in a statement.
 
In April, Imperial Brands announced the sale of its worldwide premium cigar businesses for €1.2 million ($1.4 million), of which net cash proceeds of €1.1 billion will be used to reduce debt.
 
Gemstone Investment Holding and Allied Cigar Corp. have made a nonrefundable down payment of €91.7 million to Imperial. In addition, the purchasers have agreed to pay a further nonrefundable down payment of approximately €85 million to Imperial by Oct. 7.
 
Imperial has also agreed to provide a six-month vendor loan at completion of up to €250 million while the purchasers finalize long-term financing arrangements. All other terms remain in line with the April 27 announcement.