Vector Group Announces Agreement to be Acquired by JT Group
Vector Group (NYSE: VGR) has announced a definitive agreement to be acquired by JT Group, a global company operating in tobacco, pharmaceuticals, and processed food. JT Group will offer $15.00 per share in cash for all outstanding Vector Group common stock, representing a 29.9% premium over the 60-day volume-weighted average share price. The total equity value is approximately $2.4 billion, with additional debt redemption or repayment.
The transaction, unanimously approved by both companies' Boards of Directors, is expected to close in the fourth quarter of 2024. After closing, Vector Group will become a wholly owned subsidiary of JT Group. The deal is subject to customary closing conditions, including the tender of a majority of Vector Group's outstanding shares and regulatory approvals.
Vector Group (NYSE: VGR) ha annunciato un accordo definitivo per essere acquisita da JT Group, un'azienda globale che opera nei settori del tabacco, della farmaceutica e degli alimenti trasformati. JT Group offrirà 15,00 $ per azione in contante per tutte le azioni ordinarie in circolazione di Vector Group, il che rappresenta un premio del 29,9% rispetto al prezzo medio ponderato delle azioni negli ultimi 60 giorni. Il valore totale dell'equity è approssimativamente di 2,4 miliardi di dollari, con ulteriore rimborso o pagamento del debito.
La transazione, approvata all'unanimità dai consigli di amministrazione di entrambe le aziende, dovrebbe chiudersi nel quarto trimestre del 2024. Dopo la chiusura, Vector Group diventerà una filiale interamente controllata di JT Group. L'accordo è soggetto a condizioni di chiusura abituali, inclusa l'offerta di una maggioranza delle azioni in circolazione di Vector Group e delle approvazioni normative.
Vector Group (NYSE: VGR) ha anunciado un acuerdo definitivo para ser adquirida por JT Group, una empresa global que opera en tabaco, farmacéutica y alimentos procesados. JT Group ofrecerá 15,00 $ por acción en efectivo por todas las acciones ordinarias en circulación de Vector Group, lo que representa una prima del 29,9% sobre el precio medio ponderado de las acciones en los últimos 60 días. El valor total del capital es de aproximadamente 2,4 mil millones de dólares, con redención o reembolso adicional de deuda.
La transacción, aprobada unánimemente por las juntas directivas de ambas empresas, se espera que se cierre en el cuarto trimestre de 2024. Después del cierre, Vector Group se convertirá en una filial de propiedad total de JT Group. El acuerdo está sujeto a condiciones de cierre habituales, incluida la oferta de una mayoría de las acciones en circulación de Vector Group y las aprobaciones regulatorias.
Vector Group (NYSE: VGR)는 담배, 제약 및 가공 식품 분야에서 활동하는 글로벌 기업인 JT Group에 인수되는 최종 계약을 발표했습니다. JT Group은 1주당 15.00 달러 현금을 제안하며, 이는 최근 60일간의 거래량 가중 평균 주가보다 29.9%의 프리미엄을 의미합니다. 총 자본 가치는 약 24억 달러로, 추가적인 부채 상환이나 지불이 포함됩니다.
이번 거래는 양사의 이사회에 의해 만장일치로 승인되었으며, 2024년 4분기에 마무리될 것으로 예상됩니다. 거래가 마무리된 후 Vector Group은 JT Group의 완전 소유 자회사가 됩니다. 이 거래는 Vector Group의 유통 주식 대부분의 헌납 및 규제 승인을 포함한 관례적인 종료 조건을 충족해야 합니다.
Vector Group (NYSE: VGR) a annoncé un accord définitif pour être acquis par JT Group, une entreprise mondiale opérant dans les secteurs du tabac, des médicaments et des aliments transformés. JT Group proposera 15,00 $ par action en espèces pour toutes les actions ordinaires en circulation de Vector Group, représentant une prime de 29,9% par rapport au prix moyen pondéré des actions sur 60 jours. La valeur totale des capitaux propres est d'environ 2,4 milliards de dollars, avec un remboursement ou un remboursement supplémentaire de la dette.
La transaction, approuvée à l'unanimité par les conseils d'administration des deux entreprises, devrait être finalisée au quatrième trimestre 2024. Après la clôture, Vector Group deviendra une filiale entièrement détenue de JT Group. L'accord est soumis aux conditions de clôture habituelles, y compris l'offre d'une majorité des actions en circulation de Vector Group et les approbations réglementaires.
Vector Group (NYSE: VGR) hat eine endgültige Vereinbarung zur Übernahme durch die JT Group bekannt gegeben, ein global tätiges Unternehmen in den Bereichen Tabak, Pharma und verarbeitete Lebensmittel. JT Group wird 15,00 $ pro Aktie in bar für alle ausgegebenen Stammaktien von Vector Group anbieten, was einer Prämie von 29,9% gegenüber dem volumengewichteten Durchschnittspreis der letzten 60 Tage entspricht. Der Gesamtwert des Eigenkapitals beträgt ungefähr 2,4 Milliarden Dollar, einschließlich zusätzlicher Schuldenrückzahlung oder Erstattung.
Die Transaktion wurde einstimmig von den Vorständen beider Unternehmen genehmigt und soll im vierten Quartal 2024 abgeschlossen werden. Nach dem Abschluss wird Vector Group eine hundertprozentige Tochtergesellschaft der JT Group. Der Deal unterliegt den üblichen Abschlussbedingungen, einschließlich des Angebots einer Mehrheit der ausgegebenen Aktien von Vector Group und regulatorischen Genehmigungen.
- Acquisition offer of $15.00 per share in cash, representing a 29.9% premium
- Total equity value of approximately $2.4 billion
- Potential for expanded opportunities as part of a leading global organization
- Unanimous approval from both companies' Boards of Directors
- Loss of independence as Vector Group becomes a wholly owned subsidiary
- Potential integration challenges and organizational changes
- Transaction subject to regulatory approvals and majority shareholder tender
Insights
This acquisition marks a significant milestone for Vector Group, with JT Group offering
This acquisition reflects the ongoing consolidation trend in the tobacco industry, as companies seek to maintain market share and profitability in the face of declining smoking rates and increasing regulatory pressures. JT Group's move to acquire Vector Group signifies its intent to strengthen its position in the U.S. market, particularly in the value segment where Vector's Liggett brand has a strong presence. This deal could potentially reshape the competitive landscape of the U.S. tobacco market, putting pressure on other players to consider similar strategic moves. Investors should watch for potential regulatory scrutiny and any divestitures that may be required to gain approval, as these could impact the final structure and timing of the deal.
The transaction structure as a tender offer followed by a second-step merger is a common approach for public company acquisitions. This method can potentially expedite the process compared to a traditional one-step merger. However, the regulatory approval process could be complex and time-consuming, given the sensitive nature of the tobacco industry. Antitrust reviews by the FTC and DOJ will be crucial, focusing on market concentration and potential anticompetitive effects. The international nature of the acquirer may also trigger a CFIUS review. Shareholders should carefully review the forthcoming Recommendation Statement for complete details on the offer and any potential regulatory risks. The unanimous board approval and the significant premium offered suggest a strong case for shareholder acceptance, but the extended closing timeline to Q4 2024 indicates anticipation of a thorough regulatory review process.
Delivers significant value for stockholders while positioning Vector Group for long-term success
Under the terms of the agreement, JT Group will offer to acquire all outstanding shares of Vector Group common stock for
“Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the
The transaction is subject to customary closing conditions, including the tender of a majority of the outstanding shares of Vector Group and the receipt of applicable regulatory approvals. The transaction is expected to close in the fourth quarter of 2024.
Jefferies LLC served as exclusive financial advisor and Sullivan & Cromwell LLP served as legal advisor to Vector Group. J.P. Morgan Securities LLC and J.P. Morgan Securities plc are serving as exclusive financial advisor to JT Group, Ernst & Young Tax Co. is acting as its financial and tax advisor and Freshfields Bruckhaus Deringer US LLP is acting as its legal advisor.
About Vector Group
Vector Group is a holding company for Liggett Group LLC, Vector Tobacco LLC and New Valley LLC. Additional information concerning the company is available on the Company's website, www.VectorGroupLtd.com.
Investors and others should note that we may post information about the Company or its subsidiaries on our website at www.VectorGroupLtd.com and/or at the websites of those subsidiaries or, if applicable, on their accounts on LinkedIn, Twitter or other social media platforms. It is possible that the postings or releases could include information deemed to be material information. Therefore, we encourage investors, the media and others interested in the Company to review the information we post on our website at www.VectorGroupLtd.com, on the websites of our subsidiaries and on their social media accounts.
Additional Information and Where to Find it
The tender offer described in this communication has not yet commenced. This communication is neither an offer to purchase nor a solicitation of an offer to sell shares of Vector Group. At the time the offer is commenced, JTI (US) Holding Inc. and its merger subsidiary, Vapor Merger Sub Inc., will file a Tender Offer Statement on Schedule TO with the
Cautionary Statement Regarding Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, may be forward-looking statements. These forward-looking statements may be accompanied by such words as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “target,” “should,” “likely,” “will” and other words and terms of similar meaning. Forward-looking statements include, among other things, statements regarding the potential benefits of the proposed transaction; the prospective performance, future plans, events, expectations, performance, objectives and opportunities and the outlook for Vector Group’s business; filings and approvals relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction considering the various closing conditions; and any assumptions underlying any of the foregoing. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties.
Risks and uncertainties that could cause the actual results to differ from expectations contemplated by forward-looking statements include: uncertainties as to the timing of the tender offer and merger; the risk that the proposed transaction may not be completed in a timely manner or at all; uncertainties as to how many of Vector Group’s stockholders will tender their stock in the offer; the possibility that various closing conditions for the transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; the effect of this announcement or pendency of the proposed transaction on Vector Group’s ability to retain and hire key personnel, its ability to maintain relationships with its customers, suppliers and others with whom it does business, its business generally or its stock price; risks related to diverting management’s attention from Vector Group’s ongoing business operations; the risk that stockholder litigation in connection with the proposed transaction may result in significant costs of defense, indemnification and liability; other business effects, including the effects of industry, economic or political conditions outside of Vector Group’s control; transaction costs; and other risks and uncertainties detailed from time to time in documents filed with the Securities and Exchange Commission (“SEC”) by Vector Group, including Vector Group’s current annual report on Form 10-K on file with the SEC, as well as the Schedule 14D-9 to be filed by Vector Group and the tender offer documents to be filed by JTI (US) Holding Inc. and Vapor Merger Sub Inc.
Vector Group is providing the information in this filing as of this date and assumes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as required by law.
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Investor Relations
J. Bryant Kirkland III, Vector Group Ltd.
305-579-8000
Media
FGS Global
212-687-8080 (
VectorGroup@fgsglobal.com
Source: Vector Group Ltd.
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