BAT took a big hit from the sale of its Russian and Belarussian assets, according to CEO Tadeu Marroco, reports Reuters.
During a Dec. 6 trading update, Marroco said that the proceeds received by BAT represent only a fraction of the Russian and Belarussian businesses’ true value
In September, BAT sold the assets to a consortium led by its Russian local management team, ending an 18-month long process to exit the world’s fourth-largest cigarette market following Russia’s invasion of Ukraine.
At the time, BAT did not disclose the sale price or whether the deal included a clause allowing the company to buy back the businesses at a later date.
Marroco noted that the company was unlikely to exercise the sales contract’s buyback option because Russian authorities restricted this to two years.
The company had already recognized £629 million pounds ($792.35 million) in impairments and associated costs related to the sale by the time the deal was announced