Japan Tobacco said it has acquired 40% in Ethiopia’s NTE, the country’s largest tobacco maker.
The company said in a statement that the JT Group has signed a share purchase agreement of USD 434 million with the Ethiopian Government for approximately 30% of the total shares in National Tobacco Enterprise Share Company (NTE), bringing the JT Group’s share ownership to over 70% of the total number of NTE shares.
The transaction is expected to be completed later today. “This significant increase in our ownership of NTE shares reaffirms our strong belief in the company and Ethiopia as an increasingly important place to do business in Africa,” said Eddy Pirard, President and CEO of JTI.
“By combining our international and newly acquired local expertise, we are confident that we can take NTE to a new level of growth.” Since acquiring 40% of NTE’s shares last year1 , the JT Group, as the largest shareholder, has been contributing to NTE’s growth by leveraging its international experience in the tobacco business.
“We would like to express our sincere gratitude towards the Government for their trust and for their efficient collaboration in finalizing this transaction,” added Mr. Pirard.
