ITC Ltd has sold its entire stake in its U.S. subsidiary, engaged mainly in cigarette distribution, for $24 million, the company said in a regulatory filing.
The divestment is subject to regulatory approvals and customary closing conditions.The sale agreement was signed on October 8 and is expected to be completed by November 2016. The buyer is Premier Manufacturing Inc., U.S.
In its filing ITC said that the Corporate Management Committee has approved divestment of its entire shareholding (204 shares of common stock) in King Maker Marketing a wholly-owned subsidiary along with assignment of certain trademarks owned by the company.
KMM is a wholly-owned subsidiary of ITC Limited, registered in the New Jersey, U.S. and is engaged in the distribution of ITC manufactured cigarette products in the US market, according to ITC.
Ace, CheckersAccording to the ITC portal, KMM’s product lines included the Ace, Checkers, Hi-Val and Gold Crest brand families, positioned in the value segment of the cigarette industry. These are made using 100 per cent American blended tobacco. KMM sells its products to licensed stamping distributors in all the states of the U.S.
