Reynolds American (RAI) and Lorillard shareholders will meet on 28 Jan to approve RAI’s offer for the maker of Newport cigarettes, regulatory filings show.

RAI in July announced a multi-party deal valued at USD 27.4 billion (EUR 22 billion) under which most of Lorillard, including the leading US menthol brand Newport, would go to RAI. Lorillard facilities in Greensboro North Carolina and some secondary brands would go to Imperial Tobacco. Additional shares would be issued to allow British American Tobacco to maintain its stake in a larger RAI at 42 per cent. Lorillard shareholders were offered a mix of cash and shares that would give them an overall 15 per cent stake in RAI and USD 50.50 per Lorillard share.
Management boards at RAI and Lorillard have recommended approval by the special shareholder meetings to be held in North Carolina. The deal is subject to US regulatory approval.
Following the US shareholder meetings, Imperial Tobacco stockholders will meet 28 Jan in Bristol, UK, to approve the acquisition, the company said.