when selling a business in the Russian Federation, the income received was far from the real value – Kommersant

British American Tobacco (BAT) CEO Tadeu Morocco said that when selling businesses in Russia and Belarus, the company received income that was “far from the real value” of the assets. In September, BAT announced the completion of a deal to sell two Russian assets, but the transaction amount was not disclosed.

According to Tadeu Morocco, the sale of assets dealt a “big blow” to the company. He also noted that the deal included the possibility of a buyback, but the Russian authorities insisted that the buyback period be limited to two years, reports Reuters. BAT refused such conditions, Mr. Morocco noted.

In September B.A.T. closed a transaction for the sale of two Russian assets – JSC BAT-SPb, which owns the St. Petersburg tobacco factory, and the Moscow JSC MUMT, which organizes the sales. Both structures moved on companies from the UAE – BFI Holding. In March 2022, when BAT announced its intention to transfer the business, the buyer was a consortium led by BAT Russia management. September 7, 2023 BAT reportedthat after the completion of the transaction, BAT Russia will take over the British American Tobacco enterprises in Russia and Belarus under the name ITMS Group.

Read more in the Kommersant article. “Investors came out of the smoke”.