Swedish Match AB

Swedish Match Set Alight by Philip Morris

Event-Driven
310 Views, 13 May 2022 15:19
EXECUTIVE SUMMARY
  • PMI is making a recommended cash offer for the Swedish Match at SEK106/share, valuing it at SEK161.2 billion ($16 billion), 39% premium, 17.5x EV/Fwd EBITDA and 23.1x Fwd P/E.
  • Swedish Match is strategic for PMI and a valuable asset amidst big tobacco diversification drive. Some shareholders make this point to try to extract a higher price.
  • As of close of 12 May, gross spread is 3.3%, an interesting 8.7% annualised (assuming settlement by 7 October). The risk of not completing the offer seems low.
detail (8-minute read)
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Jesus Rodriguez Aguilar
European Event-driven Analyst
Multi-AssetEvent-Driven

Jesús is an Insight Provider (Event-driven) on the Smartkarma network, where he looks across sectors at opportunities ar... 

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