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Business

Scandinavian tobacco giant eyeing possible listing

admin
August 18th, 2014


This article is more than 10 years old.

Process could begin in October

The partly Danish-owned tobacco giant Scandinavian Tobacco Group (STG) has revealed that it is pursuing a listing, according to Børsen business newspaper.

Jørgen Tandrup, the head of STG, believes that the stock market is beneficial at the moment, and it has hired the investment bank JP Morgan to look into the possible strategic options of a change in ownership.

“A listing could be a good option, if there is to be any changes in the ownership structure,” Tandrup told Børsen. “The stock market is attractive at the moment.”

STG is jointly owned by the two Danish funds Augustinus and Det Obelske Familiefond (51 percent stake), while Swedish tobacco company Swedish Match owns the remaining 49 percent.

October 'fest'
A shareholders' agreement between the three parties is scheduled to end in October, which is then expected to kick-off the listing process.

“The stockholders have identified a financial advisor to evaluate future ownership structure options,” Tandrup said.

Analysts have estimated that STG is worth about 10-11 times its operating profit, which is around 11 billion kroner, and a prospective listing would compare to the listing of the marine fuel distribution company OW Bunker, which occurred this spring.

STG – with a head office in the Copenhagen suburb of Søborg – consists of 33 companies within the tobacco industry and employs about 9,500 people globally, including around 500 in Denmark.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”