Join our community of smart investors

Imperial Tobacco to float Logista

Imperial Tobacco (IMT) is set to float its Logista distribution on the Spanish stock exchange.
June 12, 2014

Cigarette giant Imperial Tobacco (IMT) has confirmed it will float its Logista distribution business on the Spanish stock exchange. Logista's IPO will involve Imperial's Franco-Spanish subsidiary Altadis selling off a tranche of its Logista shares to institutional investors, meaning Logista won't receive any proceeds.

IC TIP: Buy at 2,611p

Imperial said it intends to remain - via Altadis - Logista's largest shareholder post-floatation, but analysts speculate this could be reduced over time. Current estimates see Logista fetching a valuation in the remit of £1.1bn.

This will not be the first public outing for Logista, which left the Spanish market in 2008, a year after it was picked up by Imperial as part of the £11bn acquisition of Altadis. Since then, Imperial's board has long-hinted at a possible divestment of Logista but February marked a turning point when rumours of a possible IPO heated up.

Logista chief executive Luis Egido Gálvez said the company had done well to maintain "a strong operating performance" in the last few years in the face of an ongoing decline in tobacco volumes. He said the IPO would help Logista expand beyond the tobacco sector and introduce new services to existing customers, while still keeping costs under control.