Scandinavian Tobacco Group aims for stock market debut -Borsen daily
COPENHAGEN Aug 18 (Reuters) - Scandinavian Tobacco Group, the world's largest pipe tobacco company, plans an initial public offering on the Nasdaq OMX Copenhagen exchange, daily business paper Borsen reported on Monday.
"A listing of Scandinavian Tobacco Group is a good opportunity. Stock market looks good at the moment," its chairman Jorgen Tandrup told the newspaper.
Scandinavian Tobacco Group has a substantial fine cut business and is the world's largest cigar manufacturer.
Analysts suggest, according to the newspaper, that the company could be valued at 10 to 11 times operating profit, indicating a market capitalisation of around 11 billion Danish crowns ($1.98 billion).
In 2012, the business of the former Scandinavian Tobacco Group was merged with the cigars and pipe tobacco business of Swedish Match. The new Scandinavian Tobacco Group is owned 51 percent by Skandinavisk Holding and 49 percent by Swedish Match.
At the time of the establishment of Scandinavian Tobacco Group, company shareholders entered into a shareholders' pact that includes a standstill agreement expiring on Oct 1 this year.
Swedish Match said in its 2013 annual report that shareholders had retained an investment bank to evaluate the options in terms of future ownership structure for the company.
According to Borsen JP Morgan has been hired to evaluate strategic options. (1 $=5.5651 Danish crown) (Reporting by Ole Mikkelsen; Editing by Clarence Fernandez)