Altadis has agreed to sell its 50 per cent stakes in Cita Tabacos de Canarias (CITA) and Tabacos Canary Islands (TACISA) to the Gallaher Group for an initial total consideration of € 32 million.

At the same time, Altadis has extended its current license agreement for Celtas, Bisonte, Lola, Piper and Un-x-2 with CITA for a further ten years period. CITA’s share capital is 50 per cent owned by the Zamorano Family through Agrupación Tabaquera Insular Canaria which has the majority of the voting rights and manages the Company, and 50 per cent by Altadis, which participation is considered a financial investment. TACISA mainly focuses on cigarettes contract manufacturing for third parties for the Canary Islands market. 50 per cent of the company share capital is held by CITA and 50 per cent by Altadis. The transaction is expected to be closed before the end of the year and is subject to approval by the relevant competition authorities.