British American Tobacco revealed it will finally sell its Russian and Belarusian businesses, 18 months after its initial announcement.
The tobacco firm said it will sell the businesses to a consortium led by its Russian management team.
The group revealed it anticipates the transaction will completed within the next month, once certain conditions have been satisfied.
The tobacco firm said it will sell the businesses to a consortium that will be led by its Russian management team
Upon the completion of the sale, the business will be referred to as the ITMS Group.
In a statement, BAT said: ‘Throughout the transfer process one of our key priorities has been the interests of our colleagues in Russia and Belarus.
‘As part of the agreement, their employment terms will remain comparable to their existing BAT terms for at least two years post-completion.’
BAT employs over 50,000 workers, and its operations in Russia include a head office in Moscow, 75 regional offices and a manufacturing facility in St. Petersburg. It also has an office in Belarus.
The firm’s Russian and Belarus division accounted for approximately 2.7 per cent of the group’s revenue, and approximately 2.5 per cent of its adjusted profit as of the end of June.
Towards the end of last month, the Lucky Strike and Rothmans owner revealed strong profit growth, bolstered by price hikes and fast-growing demand for tobacco alternatives.
BAT’s profit from operations on a reported basis rose 61.4 per cent to £5.94billion for the six months ending 30 June.
The significant profit growth also reflected comparisons with last year when BAT suffered a £957million impairment charge related to the transfer of its Russian business.
British American Tobacco shares were down 0.02 per cent to 2,583p in early afternoon trading on Thursday.
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