Despite being hesitant about the acquisition, Framtiden Management Co. has sold its stake in Swedish Match to Philip Morris International.
Dan Juran, a managing member of Framtiden Partnerships and a shareholder of Swedish Match since 2003, expressed in a statement that he believes the recent acquisition deal holds no value for long-term shareholders. Juran and his partner Christer Andersson shared their views through a press release and white paper, hoping that other shareholders would see the benefits of their stance. However, following the acquisition, Philip Morris has gained nearly 86% of the company's shares.
As an independent publicly traded company, our desired outcome failed. Our intention was to continue as minority shareholders in Swedish Match as a listed company with majority ownership. Unfortunately, during or shortly after the current tender offer period that ended on November 25, we believed that Philip Morris was likely to reach the 90% threshold, delisting the stock and initiating a mandatory offer. Considering the possible choices between tendering now or holding private shares in the short term before the mandatory offer, we regretfully tendered our shares.
In May, PMI made an offer of approximately $16 billion to acquire Swedish Match. The board of directors of Swedish Match recommended that shareholders accept the offer, but some investors, including Elliott Management Corp. and Framtiden, opposed the bid, claiming that it undervalued their company.
In October, PMI increased their bid from SEK 106 per share in May to SEK 116 per share. The board of Swedish Match has recommended that shareholders accept PMI's revised offer.
Elliot Management Corp. subsequently accepted the offer to increase its stake in PMI by 86%.
According to Swedish law, PMI needs 90% of shareholders' approval to obtain full control over the company through this transaction.
Translation: Framtiden Partnerships holds more than 14.5 million shares of Swedish Match, which represents approximately 1% of the total outstanding shares.
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