BAT To Maintain Listing Status

KUALA LUMPUR, Sept 6 (Bernama) -- British American Tobacco Bhd (BAT) will continue to have a full-fledged corporate and commercial presence in Malaysia and will maintain its listing status, notwithstanding, the recent changes to its operations. In a statement issued after the company's extraordinary general meeting (EGM) here Tuesday, BAT said consequent to the winding down of its facility in Petaling Jaya of Selangor state, the board has put their property (two parcels of leasehold land together with buildings erected thereon) up for sale by way of a public tender. "On June 8, 2016, the group entered into a conditional sale and purchase agreement with LGB Properties (M) Sdn Bhd for US$53.37 million (RM218 million). "The proposed land disposal is in accordance with the recent announcement by BAT Malaysia which announced the winding down of its factory located on the said land, arising from an increasingly challenging environment requiring the group to restructure and transform its business," it said. The proposed disposal process is expected to completed by year-end, following BAT's shareholders unanimously approved the proposed at the EGM on Tuesday. The company, which retails brands including Dunhill and Peter Stuyvesant, had in March, announced a restructure of its business operations by sourcing tobacco products for the local market from other BAT factories, regionally. "The high excise environment has ultimately led to the sharp rise in illegal cigarettes and significantly lower legal sales volume resulting in rising cigarette production costs. "This increasingly challenging environment requires the company to restructure and transform its business," it added. --BERNAMA