Company seems happy with this solution so that should tell you everything you need to know. Settle and move on. |
It could be 2550p I suppose, we have come up from 2300p plus dividends, just battern down the hatches. Budget, what's Robber Reeves going to do.Plus US election. Could be volatile couple of weeks, just my thoughts. |
Sitting with Cash.... |
Institutional investors dont drop a share in one go..they need to find general public to dump their share on....they make money even if they drop it like stones... |
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 👍🏻 |
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