Imperial Brands delays sale of worldwide premium cigars business

The sale of Imperial Brands' worldwide premium cigars business has been delayed due to the Covid-19 crisis.

The company agreed in April to sell Premium Cigars for €1.3bn, of which €1.1bn will be used to reduce debt.

"Given the challenges caused by Covid, Imperial has agreed to complete both transactions on 29 October 2020, slightly delayed from the original timetable," it said.

Imperial said the purchasers, Gemstone Investment Holding and Allied Cigar Corporation, have made a non-refundable down payment of €91.7m. They have also agreed to pay a further non-refundable down payment of around €85m to Imperial by 7 October.

In addition, Imperial has agreed to provide a six-month vendor loan at completion of up to €250m while the buyers finalise long-term financing arrangements.