Navigation Links
Reynolds American Subsidiary to Receive Payment Following Gallaher Joint-Venture Termination
Date:2/21/2008

WINSTON-SALEM, N.C., Feb. 21 /PRNewswire-FirstCall/ -- Reynolds American Inc. (NYSE: RAI) announced today that R.J. Reynolds Tobacco C.V. (RJRTCV), an indirect wholly owned subsidiary of RAI, will receive a payment of euro 265.0 million (approximately $387.6 million) from Gallaher Limited (Gallaher), a JT International (JTI) Group company, resulting from the termination of the joint-venture agreement between RJRTCV and a Gallaher affiliate.

In accordance with the terms of the joint venture, RJRTCV will receive 40 percent of that total, euro 106.0 million (approximately $155.0 million), on or before April 20, 2008. Gallaher will pay the remaining 60 percent of the valuation amount in six equal annual installments of euro 26.5 million (approximately $38.8 million), beginning in April 2009. The dollar values reflect a euros-to-dollars exchange rate of 1.4625, calculated on the morning of Feb. 20, 2008.

After accounting for the company's cost basis and discounting the stream of future payments, RAI expects the payment to result in a pre-tax gain of approximately $300 million, which will be recorded in the first quarter of 2008.

The valuation payment results from last year's termination of R.J. Reynolds-Gallaher International Sarl, a Swiss joint venture that was formed by RJRTCV and a Gallaher affiliate in 2002. The joint venture marketed American- blend cigarettes primarily in Italy, France and Spain.

On April 18, 2007, an affiliate of Japan Tobacco Inc. acquired Gallaher Group Plc, which constituted a change of control of Gallaher as defined by the joint-venture agreement. In accordance with the terms of the agreement, RJRTCV elected to terminate the joint venture prior to its expiration date. The joint venture was terminated on Dec. 31, 2007.

Under the joint-venture agreement, both companies licensed trademarks to the joint venture. Upon termination of the joint venture, the party whose licensed trademarks have the greater value is required to pay to the other party a mutually agreed payment that is calculated in accordance with the terms and principles set forth in the agreement.

ABOUT US

Reynolds American Inc. (NYSE: RAI) is the parent company of R.J. Reynolds Tobacco Company; Conwood Company, LLC; Santa Fe Natural Tobacco Company, Inc; and R.J. Reynolds Global Products, Inc.

-- R.J. Reynolds Tobacco Company, the second-largest U.S. tobacco company,

manufactures about one of every three cigarettes sold in the country.

The company's brands include five of the 10 best-selling U.S. brands:

Camel, Kool, Pall Mall, Winston and Doral.

-- Conwood Company, LLC is the nation's second-largest manufacturer of

smokeless tobacco products. Its leading brands are Kodiak, Grizzly and

Levi Garrett. Conwood also sells and distributes a variety of tobacco

products manufactured by Lane, Limited, including Winchester and

Captain Black little cigars, and Bugler roll-your-own tobacco.

-- Santa Fe Natural Tobacco Company, Inc. manufactures Natural American

Spirit cigarettes and other additive-free tobacco products.

-- R.J. Reynolds Global Products, Inc. manufactures, sells and/or

distributes American-blend cigarettes, including Natural American

Spirit, and other tobacco products to a variety of customers worldwide.

Copies of RAI's news releases, annual reports, SEC filings and other financial materials are available at http://www.ReynoldsAmerican.com.


'/>"/>
SOURCE Reynolds American Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Congressman Tom Reynolds Awarded for Protecting Medicare Choices
2. Many Older Americans Have Active Sex Lives
3. Despite grumbling, most Americans say they are happy at work
4. Record Number of Americans Lack Health Insurance
5. Longaberger Expands Horizon of Hope Campaign to Build Support for American Cancer Societys Breast Cancer Initiatives
6. AUDIO from Medialink and Pfizer: Number of Uninsured Americans Grows to 47 Million
7. New Survey Shows Americans are Still Concerned About Food Safety, Yet Still Not Smart About What They Like to Eat
8. Novo Nordisk Appoints New Leader of North American Business
9. Amid Improving Life Expectancy Rates, Risk of Premature Death is Still Significant for Americans, New Study Shows
10. Primary biliary cirrhosis more severe in African-American and Hispanic patients
11. AOA President Calls on Congress to Reauthorize SCHIP and Take Action to Ensure Health Care Coverage for All Americans
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/16/2017)... Belleville, IL (PRWEB) , ... January 16, 2017 ... ... molded seating manufacturer Prairie Seating. Prairie’s award-winning Reflection® brand of custom seating systems ... detail. The acquisition provides Permobil with a platform for innovation and growth in ...
(Date:1/16/2017)... ... January 16, 2017 , ... Board-certified oculoplastic surgeon Dr. ... the official journal of The American Society for Aesthetic Plastic Surgery, in which ... is designed to correct drooping, retracted lower eyelids, which usually result from genetics, ...
(Date:1/16/2017)... ... January 16, 2017 , ... NexTec Group has been selected ... 100 organizations honored for their accomplishments in the field of midmarket financial software. , ... and recognition, and innovation. Selection is not based on revenue and those firms chosen ...
(Date:1/15/2017)... (PRWEB) , ... January 15, 2017 , ... "On Tour ... slideshow with complete customization and ease," said Christina Austin - CEO of Pixel Film ... so that users can edit the style and animation of their slideshows. Place each ...
(Date:1/14/2017)... ... January 14, 2017 , ... Healthy living brand ... of activated charcoal products. With more and more people opting to go organic ... to how they cater to specific needs. , Moody Zook focused particularly on ...
Breaking Medicine News(10 mins):
(Date:1/16/2017)... --  The Harrington Discovery Institute at University ... has announced the 2017 recipients of Harrington Scholar-Innovator ... whose research shows promise to advance the standard ... – part of The Harrington Project for Discovery ... medicine: to advance early breakthroughs into the clinical ...
(Date:1/16/2017)... Jan. 16, 2017 When synthetic Fentanyl arrived on ... product as top-rate. They offered free samples, inviting would-be customers ... Soon, business was booming. ... 100 times more powerful than morphine, has racked up a ... last 2 years. One dealer,s recorded fentanyl sales reveals that ...
(Date:1/16/2017)... According to the new market research report "Display Controller Market by Type ... Controller), Application (Industrial Control, Medical Equipment, Automotive, Mobile Communication), and Geography - ... grow from USD 17.26 Billion in 2015 to reach USD 32.24 Billion ... Continue Reading ... ...
Breaking Medicine Technology: