UPDATE: BAT Indonesia To Merge With Bentoel To Boost Mkt Shr : (Adds details of merger)
Cigarette maker PT BAT Indonesia (BATI.JK) said Tuesday it plans to merge with sister company PT Bentoel Internasional Investama (RMBA.JK) in order to create a stronger entity.
“The combined market share of the two companies is expected to be around 8%,” BAT Indonesia, a unit of British American Tobacco PLC (BTI), said in a joint statement with Bentoel.
It said each BAT Indonesia share will be exchanged for 7.68 Bentoel shares.
The merger proposal follows the 99.74% acquisition of Bentoel’s shares in July by British American Tobacco.
