Philip Morris International (PMI)’s decision to go ahead with the purchase of all offered Swedish Match shares, despite falling short of its 90% minimum stake threshold, means it may consolidate the Swedish company in its financials and run the business as if it owned 100% of it, according to market analyst Karri Rinta of Handelsbanken Capital Markets.
However, Rinta expects PMI to reach over 90% of its Swedish rival’s shares by 25th November, which would mean it could demand Swedish Match to be delisted and initiate a compulsory redemption process, forcing the remaining shareholders to cash in their shares.
