WINSTON-SALEM, N.C. -- In reaction to a recent merger bid from British American Tobacco (BAT), the board of directors of Reynolds American formed a transaction committee consisting of independent directors to evaluate the proposal.
The nonbinding proposal from London-based BAT to acquire the shares of Winston-Salem, N.C.-based Reynolds common stock that BAT does not currently own occurred on Oct. 20. The transaction committee has retained Weil, Gotshal & Manges LLP and Moore & Van Allen PLLC as legal counsel, and Goldman, Sachs & Co. as financial adviser to assist in its evaluation of BAT’s proposal. In addition, Reynolds has retained Jones Day as legal counsel and J.P. Morgan Securities LLC and Lazard as financial advisers.
Aiming to solidify its position in the United States and global markets, BAT, which owns 42.2% of Reynolds, made a proposal to merge with Reynolds through the acquisition of the remaining 57.8% in the company for approximately $47 billion, $20 billion in cash and $27 billion in BAT shares.
In light of the evaluation of BAT’s proposal, RAI has canceled its investor day scheduled for Nov. 14.
Reynolds American is the parent company of R.J. Reynolds Tobacco Co., Santa Fe Natural Tobacco Co., American Snuff Co., Niconovum USA, Niconovum AB and R.J. Reynolds Vapor Co.
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