British American Tobacco PLC
06 November 2003
British American Tobacco to sell its holding in Myanmar (Burma)
British American Tobacco has signed an agreement for the sale of its share in
Rothmans of Pall Mall Myanmar Pte Limited (RPMM) to a Singapore based investment
company. The agreement aims to secure local manufacturing jobs and the
continued responsible marketing of British American Tobacco's brands in Myanmar
(Burma) and is conditional on the continued operation of RPMM as a going
concern. Completion and implementation are expected over the next 12 months.
RPMM is a manufacturing and marketing joint venture 40% owned by the Union of
Myanmar Economic Holdings Ltd and 60% owned by Rothmans Myanmar Holdings Pte
Limited (RMH) in Singapore.
The agreement provides for the buyer to acquire full ownership of RMH, thus
acquiring the British American Tobacco Group 60% share in the Myanmar-based RPMM
joint venture, and for British American Tobacco to license its London and State
Express 555 brands for the Myanmar domestic market to the new owners of RMH to
manufacture and market them through RPMM.
Michael Prideaux, Director, Corporate & Regulatory Affairs, said: "The sale
agreement follows the exceptional formal request by the British Government in
July for us to reconsider our investment in the joint venture. As a UK-based
multinational, we have taken the request seriously.
"We believe the solution is a balanced outcome to a difficult dilemma. We will
sell our share in the Rothmans of Pall Mall Myanmar joint venture, while
ensuring its continuing stability as a going concern that can maintain local
employment opportunities and the orderly and responsible local marketing of our
brands. We expect the arrangement to meet the British Government's requirement.
"We are leaving our role in Rothmans of Pall Mall Myanmar with regret, as our
managers have established it as one of Burma's best employers, operating to high
standards of business practice and corporate responsibility. We have been
assured that the new owners of our 60% share aim to maintain the company's high
operating standards and the best possible employment prospects for its 500
employees."
ENQUIRIES
British American Tobacco Press Office
David Betteridge, Ann Tradigo, Teresa La Thangue
+44 (0) 20 7845 2888 (24 hours)
Notes:
• Rothmans of Pall Mall Myanmar Pte Limited (RPMM) entered the British
American Tobacco Group when the Group merged in 1999 with Rothmans
International.
• RPMM was established by Rothmans Singapore in 1993, at a time of
significant foreign investment in Myanmar which was encouraged by ASEAN
governments. Myanmar belongs to ASEAN and trades with several members of the
10-nation bloc, which seeks to build economic capacity through trade and
investment.
• RPMM employs some 500 people. It is the country's leading tobacco
company, with a modern factory, pay and benefits in the top 25% of major
companies locally and programmes to develop agriculturally and environmentally
sound leaf cultivation by local farmers. It has introduced British American
Tobacco's International Marketing Standards to Myanmar and supports numerous
charitable and community programmes.
• British American Tobacco believes that businesses can contribute in
developing countries by operating to internationally recognised standards of
business practice and corporate social responsibility. We continue to believe
that it is not the best way forward for businesses to withdraw unilaterally from
countries whose governments' human rights records have been criticised.
However, we do not believe that business can step into areas of political
authority, and we recognise the importance of the UK Government's position to
the investment decisions of a UK-based multinational business.
• The Singapore investment company now to assume control of RMH is
Distinction Investment Holdings Pte Ltd (DIH), which invests in various business
ventures in South East Asia. DIH has owned 15% of RMH since 1993 and the sale
agreement provides for it to purchase the 85% British American Tobacco Group
share.
This information is provided by RNS
The company news service from the London Stock Exchange
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