The way I understand the RNS is that the Canadian subsidary has gone into creditor protection, to protect the rest of the BATS Group, and that its share of compensation will be paid out of the subsidiary’s cash held and future returns of this entity, not the wider group.
Just my opinion but personally think if there was going to be significant impact on the BATS group we would have seen a much larger share price drop. |
Oh yes, I'm sure there are a few lawyers grateful for the existence of tobacco companies. Its a shame that these payouts don't automatically include the percentage figure taken in legal fees - it is clearly of public interest and should have an upper limit. |
Perhaps this payout in Canada spread across all three major suppliers of tobacco will simply result in large price hikes in Canada in order to recover some of the outlay. providing there's no obvious collusion between the three the results would be a big drop in smoking numbers, modest difference in sales value and a likely increase in tobacco smuggling which would harm the Canadian tax authority more than the manufacturers.
There may also be a shift away from combustibles to vapes.
I do find it odd though that people even back in the 60's hadn't appreciated smoking was harmful to health. I certainly knew when I started in about 1971 having grown up in a house where mum and dad smoked quite heavily (neither dying directly from smoking).
Undoubtedly the biggest winners will be the lawyers. |
Its always general investors lose out....it is finished |
The buybacks for 2025 I am guessing will not go ahead, the market is therefore betting on that imo |
MM has done twice by pumping and dumping BATS b4 bad news comes to public domains |
That's a pretty daft thing to say when it's gone from 23 to 30 recently. Big divi shares tend to fluctuate up and down in a range; they behave differently to growth shares. |
These are poison seller...it might open up further compensation claims...only way to make money is shorting these dying Ukplc companies |
"This settlement will be funded by the cash on hand and the cash generated from the future sale of tobacco products in Canada ..."
Sounds like there will be some impairment to future earnings. |
The rns suggests they have the money set aside to settle this?
Or did I dream that?
Salty. |
These are western..European ponzy scheme selling venom...0.2 percent growth rate versus 4.6 percent Chinese growth rate..still shameless western..European media says China broke |
C$32bn is about £18bn. 1 year's dividend payments is about £5.2bn. So if it's split 3 ways that's just over a year's dividends gone up in smoke. The other question is if there's likely to be anyone else lining up with their hands out. |
whats 7 14 bill between friend? GULP! |
I hope they don't have to sell more of indian shares to pay off liability....big amount even 1/3.... |
thought it was between them... |
Is it $23bn each or between them?
If between them is it divided by 3 equally or somehow weighted depending if one of them sells more in Canada for instance. |
That settlement amount is huge at $23b (USD) ....
They may have to suspend buybacks next year if BAT's share is in the many billions |
See if anything in the weekend press about today's rns. |
 British American Tobacco said on Friday a plan has been filed in a Canadian court to potentially resolve and settle its Canadian subsidiary's tobacco litigation in the country, more than five years after the unit filed for bankruptcy protection.BAT's unit Imperial Tobacco Canada (ITCAN) has been under a court supervised mediation process negotiating a possible settlement of all its outstanding tobacco litigation in Canada.The unit had sought bankruptcy protection in 2019 shortly after a Quebec court upheld a 2015 decision that awarded smokers in the Canadian province around C$15 billion ($10.88 billion) in a blow to subsidiaries of BAT, Philip Morris International and Japan Tobacco International.BAT had said it would set aside 436 million pounds ($569.68 million) in 2019, after the Quebec court upheld its decision.The court-appointed mediator's and monitor's plan of compromise and arrangement has been filed in the Ontario Superior Court of Justice, BAT said on Friday."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," ITCAN said in a statement published by BAT. |
I suspect this news has been a factor in the recent fall along with what we have seen today.
I think this will work itself out next week then the rise into the next divi will start to take shape. We may not run to the levels seen last time pre the divi getting locked in but there is still value to be had here in my opinion.
Good luck all 👍🏻 |
Cigarette makers Philip Morris, British American Tobacco and Japan Tobacco will pay C$32.5 billion ($23.6 billion) to settle a long-running tobacco lawsuit in Canada, as part of a court-appointed mediator's proposed plan, Philip Morris said on Friday.The Canadian units of the three tobacco giants were dealt a massive blow in 2015 after a Quebec court awarded damages to some 100,000 smokers and ex-smokers who alleged the companies knew since the 1950s their product was causing cancer, other illnesses and failed to warn consumers adequately.After an appeal, a Quebec court in 2019 upheld the 2015 decision that awarded smokers in the Canadian province around C$15 billion, forcing the Canadian subsidiaries of all three companies to seek bankruptcy protection.The subsidiaries have been under a court-supervised mediation process negotiating a possible settlement since then.The allocation of the aggregate settlement amount between the tobacco giants remains unresolved, according to Philip Morris."Although important issues with the plan remain to be resolved, we are hopeful that this legal process will soon conclude, allowing RBH (Rothmans, Benson & Hedges) and its stakeholders to focus on the future," Philip Morris CEO Jacek Olczak said in a statement on Friday.Rothmans, Benson & Hedges is Philip Morris' Canadian unit.British American Tobacco earlier on Friday said that the proposed plan marked a positive step towards finding a resolution. It did not provide details of the plan that Philip Morris did.BAT said its unit Imperial Tobacco Canada supported the settlement framework and structure and that the settlement would be funded by cash on hand and cash generated from the future sale of tobacco products in Canada.BAT shares fell 3% on Friday morning. |
I wonder are budget leaks contributing to todays decline? |
32.5bn Canadian dollar settlement could be the reason for the fall. I assume BAT has to paca significant chunk |
Good news...reminds me of the aftermath of the curca 2000 US court settlement. |
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