Tuesday, May 10, 2022

Swedish Match takeover rumours

There is an article just out that Swedish Match is in advanced merger talks with Philip Morris at a price of about USD15 billion.

At Bronte we own 15.1 million shares in Swedish Match - or about 1 percent of the company.

We believe the future for Swedish Match is considerably better than the price reflected and we are not happy with this offer.

We will consider our future actions.

John Hempton


Anonymous said...

How can say that before any price is proposed?

Anonymous said...

Mr Bronte, I agree with you. I think that the take-out price should be closer to 150 SEK per share. I own 1MM shares. I am planning to email IR today. Are you planning to contact management and let them know what an acceptable price to you is?

NG said...

Hi John, SWMA is a great company, but PMI is in all likelihood a superior one. As IQOS rolls out over the next 10 years, the earnings growth there is very high and not very risky. I'd consider rolling the position! NG

Kunal V Patil said...

Okay Good Luck.

General disclaimer

The content contained in this blog represents the opinions of Mr. Hempton. You should assume Mr. Hempton and his affiliates have positions in the securities discussed in this blog, and such beneficial ownership can create a conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance and are subject to certain risks, uncertainties and other factors. Certain information in this blog concerning economic trends and performance is based on or derived from information provided by third-party sources. Mr. Hempton does not guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. Such information may change after it is posted and Mr. Hempton is not obligated to, and may not, update it. The commentary in this blog in no way constitutes a solicitation of business, an offer of a security or a solicitation to purchase a security, or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author. In particular this blog is not directed for investment purposes at US Persons.