There is now a timeline for the proposed sale of Altadis U.S.A., JR Cigar and 50 percent of Habanos S.A.
Imperial Brands, plc—the British multinational corporation that owns the aforementioned cigar asssets as well as other tobacco businesses—has announced that it is “on track” to divest £2 billion ($2.5 billion) worth of assets by May 2020.
While that is not a guarantee that its cigar businesses will be sold, Imperial announced in late April that it was trying to sell its premium cigar businesses. Analysts at Jefferies estimated at the time that Imperial could generate $1.3-2 billion from the sale of the premium business. They also estimate that the premium cigar business generates $450 million in revenue and earns $111 million in profit annually.
The £2 billion number was announced in May 2018 after criticism from shareholders, to date Imperial has generated less than 15 percent of that target through the sale of its assets.
Today’s announcement came as part of a financial update in which the company announced that it would buyback £200 million in shares.