Japan Tobacco Increases Stake in Foodmaker Katokichi to 93.9%

Source from:  By Fergus Maguire Dec. 27 (bloomberg.com) 12/28/2007

Japan Tobacco Inc., the nation's biggest cigarette company, said it spent 102 billion yen ($893 million) to boost its stake in frozen-food maker Katokichi Co. to 93.9 percent. Katokichi stockholders will receive 710 yen a share, a 20 percent premium to the price when the offer was announced on Nov. 22. Once it gains full ownership, Japan Tobacco plans to sell a 49 percent stake in Katokichi to instant-noodle maker Nissin Food Products Co. and the three companies will combine their frozen-food units. Japan Tobacco is moving into emerging markets and expanding food sales to reduce its reliance on Japan, where the percentage of men that smoke has fallen by half over the past 40 years. The Tokyo-based maker of Camel cigarettes bought Gallaher Group Plc in April to add Russian and European tobacco sales and is reported to be planning a bid for Turkey's state-owned Tekel. Japan Tobacco previously held a 5 percent stake in Katokichi. To contact the reporters on this story: Fergus Maguire in Tokyo at fmaguire@bloomberg.net Enditem