As previously announced in April, Imperial Brands plc (LON:IMB) agreed the sale of its worldwide premium cigar businesses for a total consideration of €1,225 million, of which net cash proceeds of €1.1 billion will be used to reduce debt. Given the challenges caused by COVID, Imperial has agreed to complete both transactions on 29 October 2020, slightly delayed from the original timetable.
Gemstone Investment Holding Ltd and Allied Cigar Corporation, S.L. have made a non-refundable down payment of €91.7 million to Imperial. In addition, the purchasers have agreed to pay a further non-refundable down payment of approximately €85 million to Imperial by 7 October.
Imperial Brands has also agreed to provide a six-month vendor loan at completion of up to €250 million while the purchasers finalise long-term financing arrangements. All other terms remain in line with the announcement of 27 April.