Japan Tobacco to Purchase Katokichi for $1b

Source from:  Income Cover Dubai 22/11/2007 11/23/2007

Japan's leading cigarette company, Japan Tobacco Inc. has arranged to purchase Katokichi Co. for a total of $1 billion in order to increase food sales by double, Bloomberg reported. Japan Tobacco Inc. took the measure after company figures showed a significant curb in the number of smokers in Japan. A 20 percent premium will be received by Katokichi stockholders at approximately $6.5 per share. The tobacco company will then sell a 49 percent stake in Katokichi to instant-noodle maker Nissin Food Products Co. and the three companies will merge their frozen-food units. On another note, Japan Tobacco's sales of food, such as its Roots canned coffee and Obento Dai-Ninki spring rolls, gained 5.1 percent to $1.4 billion during the six month period which ended on September 30 of the current year. Enditem