Imperial Brands will complete the sale of its premium cigar business a little bit later than originally planned, the company said in a statement.

As previously announced in April, Imperial Brands agreed the sale of its worldwide premium cigar businesses for a total consideration of EUR 1,225 million, of which net cash proceeds of EUR 1.1 billion will be used to reduce debt. Given the challenges caused by COVID, Imperial has agreed to complete both transactions on 29 October 2020, slightly delayed from the original timetable.
Gemstone Investment Holding Ltd and Allied Cigar Corporation, S.L. have made a non-refundable down payment of EUR 91.7 million to Imperial. In addition, the purchasers have agreed to pay a further non-refundable down payment of approximately EUR 85 million to Imperial by 7 October.
Imperial has also agreed to provide a six-month vendor loan at completion of up to EUR 250 million while the purchasers finalise long-term financing arrangements. All other terms remain in line with the announcement of 27 April, Imperial said.