Sabanci Holding sold all of its shares in Philsa Philip Morris Sabanci Cigarettes and Tobacco (PHILSA) and Philip Morrissa Philip Morris Sabanci Marketing (PMSA) capital to Philip Morris for a transfer fee of ₺2.74 billion.
Sabanci Holding was planning to transfer all of its shares in Philsa Philip Morris Sabanci Cigarettes and Tobacco Industry and Trade Inc. (PHILSA) and Philip Morris Sabanci Marketing and Sales Inc. (PMSA) to Philip Morris International (PMI) and/or its affiliates, the majority shareholder of the companies.
Philip Morris International bought the remaining 25% of its subsidiaries in Turkey from Sabanci Holding.
The following information was included in the statement made by the company on the subject:
“As previously announced to the public, in order to complete the transfer of all of our company’s shares in Philsa Philip Morris Sabanci Cigarette and Tobacco Industry and Trade Inc. (PHILSA) and Philip Morrissa Philip Morris Sabanci Marketing and Sales Inc. (PMSA) to Philip Morris Products SA (PM) and/or its affiliates an application was made to the Competition Authority on October 6, 2021 and the said transaction was authorized at the meeting of the Competition Board on December 24, 2021.”
“COLLECTED BY OUR COMPANY”
In the statement stating that the necessary conditions for the planned share transfer have been fulfilled and the relevant permits and approvals have been obtained, “All of our company’s shares with a nominal value of ₺750 thousand, representing 25% of PHILSA’s capital, and all shares with a nominal value of ₺173 thousand 250, representing 24.75% of PMSA’s capital, after the corrections on the closing date, was transferred to PM on 5 January 2022 for a transfer fee of ₺2 billion 747 million 308 thousand 823 and the transfer fee was collected by our company on the same day.”
On the other hand, it was stated in the statement that the company effectively uses derivative instruments against fluctuations in exchange rates and various other market risks within the framework of cash management principles, and carries out financial transactions (hedging) to protect against exchange rate risk, especially for the sale of PHILSA and PMSA shares.
In this context, 88% of the transfer price of PHILSA and PMSA shares has been hedged at a weighted average exchange rate of 9,3249 TL/USD with various forward contracts.
The transfer price will be subject to some predetermined adjustments according to the independently audited 2021 financial results of PHILSA and PMSA, and the final transfer price will be announced to the public when it is finalized.
30-YEAR PARTNERSHIP ENDED
On the other hand, PMI Middle East, Africa and Duty Free President Drago Azinovic made a statement on the subject: “We would like to express our deepest gratitude to Sabanci Management, with whom we have established a very successful partnership relationship since the early 1990s. For more than 30 years, we have been investing in Philip Morris Sabanci and its employees, as well as in social, economic and agricultural programs in Turkey.
Innovation, development and digital transformation are our top priorities. The said acquisition reflects PMI’s trust and commitment to Turkey’s future and economy. Our desire to offer better alternatives to Turkish adult cigarette consumers continues, as it is for millions of cigarette consumers in 70 countries of the world.”
Source: NTV / Translated by Irem Yildiz