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Tag: finance

  • DoF Says Illicits Threaten Philippines Fiscal Stability

    DoF Says Illicits Threaten Philippines Fiscal Stability

    Philippine finance officials are raising alarms over the growing impact of illicit cigarette trade, warning that smuggling is driving down tobacco excise tax revenues and threatening funding for public health programs. The Department of Finance (DoF) said tobacco tax collections fell 24% from P174.6 billion ($3 billion) in 2021 to P132.3 billion ($2.2 billion) in 2024, despite rising smoking rates, with Finance officials describing illegal tobacco as a direct threat to fiscal stability and healthcare financing.

    Officials estimate the government may have lost up to P172 billion ($2.9 billion) in tobacco excise revenue between 2020 and 2025 due to smuggling, with illegal cigarettes accounting for roughly 20% of the market. Lawmakers and industry representatives said the price gap between legal packs, which sell for P125 to P200 ($2.13 to $3.40), and illicit packs priced as low as P30 ($0.51) is fueling demand, while also pointing to regulatory loopholes and misdeclaration of products as factors worsening the problem. Authorities are now considering measures including harmonizing vape tax rates, introducing minimum retail pricing, and strengthening coordination between regulatory agencies to curb illegal sales.

  • ‘Billion Dollar’ Plxsur Sells for $97K: Bloomberg

    ‘Billion Dollar’ Plxsur Sells for $97K: Bloomberg

    According to Bloomberg News, UK-based vaping company Plxsur entered administration after failing to secure new investment and exhausting its cash reserves, before being sold out of insolvency for £76,500 (about $97,000), “abruptly ending its ambitions to build a global vaping roll-up.” Bloomberg, citing documents from administrator KR8 Advisory Ltd., reported that Plxsur had signed 12 option agreements to acquire vaping businesses — including manufacturers in Latvia and the Czech Republic — but ultimately completed none of the deals, with its own projections of capturing 10% of the global market and reaching $1 billion in annual revenue described as aspirational. The report said Plxsur unsuccessfully pursued a sale process with Goldman Sachs, later sought debt financing via Stifel, and explored funding proposals involving HPS Investment Partners and Cartesian Capital Group, all of which fell through, before deteriorating finances pushed the company into insolvency in late 2025 and its eventual purchase by shareholder James Cox.

  • KT&G Announces Additional Share Returns, Increased Annual Dividend

    KT&G Announces Additional Share Returns, Increased Annual Dividend

    KT&G announced stronger shareholder return measures and reaffirmed its global growth trajectory yesterday (September 23) at its “2025 CEO Investor Day.” The company committed to a minimum annual dividend of 6,000 KRW ($4.26), a 600 KRW ($0.43) increase from last year, alongside an additional 260 billion KRW ($184.6 million) in share repurchases and cancellations—funded by the sale of non-core assets. This represents a 171% increase in shareholder returns year-over-year. KT&G has already canceled 10.4% of its shares since 2023 and aims to build further value through flexible capital deployment as global business performance continues to accelerate, supported by premiumization, cost optimization, and fully localized value chains. The company is targeting double-digit growth in both operating profit and revenue in 2025, following five consecutive quarters of “triple growth” across revenue, profit, and sales volume.

    In parallel, KT&G disclosed a comprehensive MOU with Altria Group, Inc. to collaborate across nicotine and non-nicotine categories. KT&G CEO Kyung-man Bang emphasized that the combined strategy of strong shareholder returns and global expansion through strategic partnerships positions the company for sustainable long-term growth.

  • BAT Announces Pricing of $2.5B Notes Offerings

    BAT Announces Pricing of $2.5B Notes Offerings

    British American Tobacco today (March 12) announced that B.A.T Capital Corporation, a wholly owned subsidiary of BAT, has priced an offering of $2.5 billion aggregate principal amount of guaranteed debt securities consisting of (1) $1 billion 5.350% notes due in 2032, (2) $1 billion 5.625% notes due in 2035, and (3) $500 million 6.250% notes due in 2055.

    The notes will be fully and unconditionally guaranteed on a senior and unsecured and joint and several basis by BAT, B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V. and, unless its guarantee is released in accordance with the relevant indenture, Reynolds American Inc.

    The issuance of the notes is expected to close March 13, subject to customary closing conditions.

    BAT intends to use the net proceeds of the offering of the notes for general corporate purposes, including the potential repayment of existing indebtedness.

    The preliminary prospectus supplement is available at: 424B2 (sec.gov)

    The shelf registration statement is also available at: F-3ASR (sec.gov)

  • KT&G Secures Strong Credit Ratings

    KT&G Secures Strong Credit Ratings

    KT&G has received stable credit ratings from S&P Global and Moody’s, earning an A- and A3 rating, respectively. These ratings reflect the company’s robust position in Korea’s tobacco market, where it leads with a 66.8% share in traditional cigarettes and a 46% share in heated tobacco products as of Q3 2024.

    KT&G stated it remains committed to maintaining a stable financial structure while continuing investments in its core businesses. These efforts aim to sustain its market leadership and solidify its credibility in both domestic and global markets.