This has been an overhang for years, as it heads towards a resolution and clears the path for trading going forward, the net effects should be value adding over time once we know the costs..
See IF we get another run up to 3000 pence for FY2024 after the dust has settled.. :o) |
 18 October 2024 British American Tobacco p.l.c. ("BAT")
Canada - CCAA Update
In March 2019, Imperial Tobacco Canada Limited (ITCAN), a subsidiary of BAT, obtained creditor protection under the Canadian Companies' Creditors Arrangement Act (CCAA). Under a confidential court supervised mediation process ITCAN has since been negotiating a possible settlement of all of its outstanding tobacco litigation in Canada while continuing to run ITCAN's business in the normal course.
BAT now notes the court-appointed mediator's and monitor's plan of compromise and arrangement, which has been filed in the Ontario Superior Court of Justice.
In response to the filing of such plan, BAT's Canadian subsidiary, ITCAN, stated "Today marks an important step towards a potential settlement. Since filing for CCAA protection in 2019, ITCAN has been working in good faith under the direction of the mediator to resolve all tobacco litigation in Canada.
"The plan resolves all Canadian tobacco litigation and provides a full and comprehensive release to Imperial, BAT and all related entities for all tobacco claims. This settlement will be funded by the cash on hand and the cash generated from the future sale of tobacco products in Canada while at the same time maximizing recovery for the creditors. It also allows the Canadian tobacco companies to continue operating as a going concern for the benefit of all stakeholders.
"ITCAN is supportive of the settlement framework and structure in the mediator's and monitor's plan of arrangement and the progress that has been made, and we remain hopeful that a comprehensive settlement can be achieved quickly. We look forward to working towards a final agreement that is in the best interests of all stakeholders, including the claimants, and bringing this process to a successful conclusion."
A BAT spokesperson said "Today marks a positive step towards finding a resolution. This has been a complex, confidential mediation and, like our Canadian colleagues, we are hopeful of a quick conclusion to this process and securing a Canadian settlement for the benefit of all stakeholders." |
Did not think I would say this Imps look better than Bats. |
Thinking of changing horses ie jumping g from IMPERIAL TO BATS.. |
Cheer up Salty and think of the divy !! |
IMB up again. BATS down again. This really is a trend!
Guess which one I sold four weeks ago!
Salty |
'Landlords look set to be exempt from Rachel Reeves’s capital gains tax (CGT) raid after Telegraph Money campaigned for Labour to end its war on property investors.
In a victory for this newspaper, second home owners and buy-to-let investors will be spared any rises to the levy which instead will target shares and other assets.'
She's about to clobber shareholders. |
Exponential population growth in the combustible tobacco markets of Indonesia, Malaysia and much of Africa probably pans.
I understand Imp's is particularly popular in such areas as they are cheaper products. |
I would guess there has been a reduction in the western world but not in other parts such as South America / Asia and maybe the middle East.
Good luck all 👍🏻 |
Interesting commentary from investors chronicle today in my inbox About so called sin stocks and in particular tobacco claiming that there were 500 million more smokers worldwide than in 1980 I was gobsmacked ! |
Bit disappointing, let's hope keeps above 2700p leading up to budget. |
There's a shed load of individual presentations on the company website.
An archive version of the webcast may be made available. |
Any news what was said on Bats Capital Market Day, can't find any news. |
I also have similar weighting in both, but recently focused more in BATS due to their divi yield advantage. I see this as a good medium term income player with marginal upside on share price I plan to continue adding here GLA |
Use the dividends from 1 to fund the other, then you will have had them all for nothing and just keep building the position out for a year or 2, keep them both for 10 years and watch it play out..
IMB is being well bought for the coming 2 bigger dividends and the soon to be equal quarterly payouts from 2025, just what I was waiting for too..
BATS looks (to me) to be just trading as the TA chart suggested it should, highs at 2950, retrace to the support line and now pushing on again to the next high, should be over 3000 pence too.. :o) |
Thank you. I think you are right. I need to think over the medium to long term. |
Paulstills - I haven’t done the comparison of the two to any great depth but feel that IMB longer term should do better due to its geographical revenue compared to BATS (more US focussed). Also don’t have as much faith in the non-combustible future profitability as the BATS management appears to have. Much prefer the revenue cash margin of sticks.
Looking at a 2 year chart comparing IMB and BATS, yes you may have missed the opportunity to get into IMB on the cheap but reckon it still represents a decent opportunity over the medium term, just my opinion and DYOR. |
I have been a holder of both for a number of years now.
I do the same with other sectors too so as not to have all sector eggs in one basket. IMB is likely to break and hold 2300 in my opinion and I would not be shocked to see over 2350 eventually / in the run up to the next divi.
Good luck all 👍🏻 |
Yes I think you're right and wish I opted this strategy from the beginning rather than going only for BATS. Is it too late now to allocate some to IMB is what I'm thinking. |
Im 50:50 invested with IMB and BATS as they both appear to have runs together and at different times. Both generate a lot of cash so easier to just back both horses.
Also hold a little UVV to provide some alternate tobacco income. |
I think I've backed the wrong horse. IMB going from strength to strength!! |
Inflation down which for us is good, but for companies, can't put up prices so much, or I'm I off track ? |
Not possible in 11 years ?
A lot changes in 11 years.
Guess someone caught sight of that RNS before the close... |
The GBP will weaken as our interest rates come off their highs into 2025, BATS still own 25% of ITC and they are about to sell their non core hotel business and that windfall / special dividend payout will in turn fund our buybacks here for 2025/2026..
We are committed to building a smokeless world and becoming a predominantly smokeless business by 2035, so they plan to be 51% revenue from non combustibles by then, ambitious but not impossible, 25.07.2024 - revenue at H1 from smokeless products now 17.9% of Group revenue, up 1.4 ppts vs FY23
A progressive quarterly dividend is fine, mop them up, sit tight, watch and wait (IMO)..
Back on the rising trend line from March 2024 after the recent high to c3000 and could revisit this level for FY.. :o) |
Let's hope it's not a case of better to travel than arrive, see what Mr Market makes of it tomorrow. |
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