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Scandinavian Tobacco Group to go public

TheCopenhagenPost
January 14th, 2016


This article is more than 8 years old.

IPO on the way from Danish tobacco giant

Borkum Riff, just one of STG’s many products (photo: Zozza )

The Scandinavian Tobacco Group, one of the world’s leading producers of cigars and traditional pipe tobacco, will soon be listed on Københavns Fondsbørs, the Copenhagen Stock Exchange.

According to its chairman Jørgen Tandrup, the group has been planning an IPO for a while.

“The planned IPO is the culmination of the journey we started in 2010, when we created a large global market leader with a highly recognised and diversified portfolio of cigars, pipe tobacco and fine-cut tobacco,” said Tandrup.

“Since then, management has begun implementing a number of initiatives, laying out a new strategy for our brand portfolio, improving production processes and adapting production capacity.”

A growth move
Prior to the IPO,  Scandinavian Tobacco Group is still owned by two Danish funds – the Augustinus Fund and the Obel Family Fund – which control 51 percent while Swedish Match Cigars Holding controls 49 percent of the group.

READ MORE: Niels Frederiksen the new CEO of Scandinavian Tobacco Group

Group head Niels Frederiksen said that going public will help to ensure the company’s growth.

“We have managed to maintain and expand our market leadership in cigars, pipe tobacco and fine-cut tobacco, and we have a clearly defined strategic agenda to continue to improve our profitability,” he said.

Changes on the board
Changes will be made to the tobacco group’s board in connection with the planned IPO.

Søren Bjerre-Nielsen, Dianne Neal Blixt and Luc Missorten will join the board, and Anders Obel, Lars Dahlgren and Fredrik Lagercrantz will step down.


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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.”