COPENHAGEN Aug 18 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
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
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
(1 $=5.5651 Danish crown)
(Reporting by Ole Mikkelsen; Editing by Clarence Fernandez)