Japan Tobacco to Acquire Frozen-Food Maker Katokichi

Source from:  By Mari Murayama Nov. 22 (Bloomberg) 11/22/2007

Japan Tobacco Inc., the nation's biggest cigarette maker, agreed to buy frozen-food maker Katokichi Co. for about 109 billion yen ($1 billion). Japan Tobacco will pay 710 yen for each Katokichi share, a 20 percent premium to yesterday's closing price. Japan Tobacco will then sell a 49 percent stake in Katokichi to instant-noodle maker Nissin Food Products Co. The three companies announced the plan in statements distributed at the Tokyo Stock Exchange. After the transaction is complete, Japan Tobacco and Nissin will shift their frozen- food units into Katokichi. Buying Katokichi would double the size of Japan Tobacco's food business, giving it a producer of frozen noodles and dumplings, processed rice and bottled mineral water. The Tokyo- based maker of Camel and Mild Seven cigarettes has been expanding its food business as tobacco consumption falls in its home market. Japan Tobacco, which is 50 percent government-owned, is the biggest traded cigarette maker after Altria Group Inc. and British American Tobacco Plc. Japan Tobacco's offer is open from Nov. 28 until Dec. 26. The cigarette company already owns 5 percent of Katokichi. Enditem