Brief: Scandinavian Tobacco Integrates Agio Cigars

Scandinavian Tobacco A/S

23/04/2020 07:10

April 23 (Reuters) - Scandinavian Tobacco Group A/S
 STOGR.CO :
    * ANNOUNCES COMPLETION OF PLAN FOR INTEGRATION OF AGIO
CIGARS INTO
SCANDINAVIAN TOBACCO GROUP
    * COMBINATION OF SCANDINAVIAN TOBACCO GROUP AND AGIO CIGARS
IS
EXPECTED TO DELIVER SUBSTANTIAL COST SYNERGIES WITHIN SALES &
MARKETING, PRODUCTION AND BACK OFFICE FUNCTIONS
    * WHEN FULL INTEGRATION HAS BEEN COMPLETED BY END OF 2022,
IT IS
ASSUMED THAT AGIO CIGARS WILL CONTRIBUTE TO AN INCREASE IN
SCANDINAVIAN TOBACCO GROUP'S EBITDA MARGIN BEFORE SPECIAL ITEMS
OF MORE THAN 2%-POINTS, BASED ON ESTIMATES OF NET SYNERGIES AT
LEVEL OF DKK 225 MILLION
    * WITH CONTINUED UNCERTAINTY AND LACK OF PREDICTABILITY
CAUSED BY
OUTBREAK OF COVID-19 PREVAILING, A CREDIBLE GUIDANCE FOR
COMBINED COMPANY CAN STILL NOT BE COMMUNICATED
    * EXPECTS TO PROVIDE AN UPDATE ON FINANCIAL GUIDANCE FOR
2020,
INCLUDING AGIO CIGARS, AS SOON AS NEGATIVE IMPACT OF COVID-19 ON
BUSINESS CAN BE PROPERLY ASSESSED

Source text for Eikon:  ID:nGNE3jlbzZ 
Further company coverage:  STOGR.CO 

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