Altadis Reorganizing Logistics, US Cigar Business

Source from:  tobaccoreporter.com Europe, Thursday, June 28, 2007 06/29/2007

As part of Altadis' plan to reorganize its logistics business in France by spinning it off, the Seita board of directors yesterday approved the terms and procedures for transferring the business' assets to Altadis Distribution France (ADF), the name of the new subsidiary. In a press note posted on its website, Altadis said that it was looking to strengthen its logistics business by creating an independent company that would 'demonstrate its neutrality with regard to the distribution of tobacco products'. 'In addition, the project will help to develop the distribution of non-tobacco products and to improve the group's legal and financial structure,' it added. Since the transfer is strictly internal, the assets contributed by Seita will be valued at their book value as of July 31, 2007, the date on which Seita shareholders will be asked to approve the transaction. In exchange for the contributed assets, Seita will receive shares in ADF. Meanwhile, Altadis has also started the process of reorganizing its US cigar business, which is to be operated through a newly created, wholly owned Seita subsidiary, Altadis Cigars Investments (ACI). The Seita Board of Directors yesterday approved the terms of the transfer of the shares held in Altadis Holdings USA to ACI, based on their net book value at December 31, 2006. In exchange for this contribution, Seita will receive ACI shares. A number of other steps will have to be taken before the reorganizations are finalized. Enditem