BTI - British American Tobacco p.l.c. - Agrees to acquire Protabaco

BTI - British American Tobacco p.l.c. - Agrees to acquire Protabaco             
British American Tobacco p.l.c.                                                 
Incorporated in England and Wales                                               
(Registration number: 03407696)                                                 
Short name: BATS                                                                
Share code: BTI                                                                 
ISIN number: GB0002875804                                                       
("British American Tobacco p.l.c." or "the Company")                            
British American Tobacco agrees to acquire Protabaco                            
British American Tobacco has agreed to acquire a 100 per cent interest in       
privately owned Productora Tabacalera de Colombia, S.A.S. (Protabaco), the      
second largest cigarette company in Colombia, for an enterprise value of US$452 
million.                                                                        
On completion, the acquisition will elevate British American Tobacco from third 
to second place in Colombia, Latin America`s fourth largest cigarette market    
with total industry sales of around 17 billion cigarettes in 2010.              
Mark Cobben, British American Tobacco`s Director, Americas, said: "This         
investment will strengthen and complement our position in an important market   
and fill a strategic gap in our Americas region."                               
Protabaco sold 5.5 billion cigarettes in 2010 - accounting for almost one third 
of the domestic market.  Its biggest brand, Mustang, is the country`s second    
best selling cigarette with a retail share around 18 per cent.                  
Funding for the transaction will be from existing British American Tobacco      
resources.                                                                      
The transaction represents a multiple of 11.3 times Protabaco`s US$40 million   
domestic 2010 EBITDA on net domestic revenues of US$110 million.                
The transaction is subject to competition authority approval and final          
confirmatory due diligence.                                                     
Notes to editors                                                                
*    British American Tobacco is the world`s second largest publicly quoted     
    tobacco group by global market share with brands sold in more than 180      
markets. In 2010 its subsidiary companies produced 708 billion cigarettes   
    and employed more than 60,000 people. Leading global brands are Dunhill,    
    Kent, Pall Mall and Lucky Strike.                                           
*    The US$452 million agreed price is on a debt and cash free basis meaning it
will be reduced by the amount of any Protabaco net debt or increased by any 
    net cash in the business.                                                   
*    British American Tobacco is being advised by Rothschild.                   
26 May 2011                                                                     
Sponsor: UBS South Africa (Pty) Ltd                                             
Date: 26/05/2011 08:55:38 Supplied by www.sharenet.co.za                     
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