Believe probable standalone long-term returns far outweigh offer
price
Full details of The Framtiden Partnerships' position available
at www.oursmokefreefuture.com
CHICAGO, Sept. 21, 2022 /PRNewswire/ -- Framtiden
Management Company LLC, together with its affiliates ("Framtiden"
or "The Framtiden Partnerships"), today announced its opposition to
the proposed takeover of Swedish Match AB (STO: SWMA) ("Swedish
Match" or the "Company") by Philip Morris International, Inc.
(NYSE:PM) ("Philip Morris").
As a long-term Swedish Match shareholder since 2003, Framtiden
believes that the acquisition offer of SEK
106 per share deeply undervalues the Company.
Specifically, the offer:
- Does not adequately value Swedish Match's leading position in
the rapidly growing non-tobacco nicotine pouch segment in the U.S.
with their ZYN product, and the latent and massive market
potential in both the U.S. and other countries;
- Underappreciates the uniqueness of a fast-growing established
global consumer staples business;
- Forces the realization of capital gains that would otherwise be
deferred for long-term investors who want to participate in the
Company's continued growth; and
- Is significantly below Swedish Match's intrinsic value per
share, which Framtiden estimates at close to SEK 200 per share.
Accordingly, Framtiden informed the Board that it would not
support the proposed transaction. The Framtiden Partnerships own
over 14.5 million shares representing about 1% of outstanding
shares.
Dan Juran, Managing Member of The
Framtiden Partnerships, said, "My partner Chris Anderson and I believe that this deal does
not make sense for long-term shareholders. I have closely followed
Swedish Match's development for nearly two decades, built
relationships with its managers, and currently serve as the
Chairman of the Company's Nominating Committee. I was dismayed to
see the Board recommend the sale of this Swedish jewel at a bargain
price in the early stage of probably the greatest chapter in its
long history."
Juran continued, "Investors may be tempted by the short-term
premium, especially during a period of market declines, but I
believe that Swedish Match in 2022 may be in the rarified air of
Coca-Cola in the 1980's or Philip Morris itself in the 1950's.
Those companies compounded earnings at a superior rate for many
years, and shareholders who stuck with them were rewarded
mightily. We believe sticking with Swedish Match is likely to prove
far more remunerative to shareholders over time than cashing out.
We hope other shareholders see the merits of our position, further
detailed in our white paper."
Full text of Framtiden's white paper on Swedish Match and Philip
Morris' tender offer can be found at:
www.oursmokefreefuture.com
Contact
info@framtidenholdings.com
IMPORTANT INFORMATION
This press release has been prepared by The Framtiden
Partnerships in their capacity as shareholders in Swedish Match and
shall not be regarded as investment advice. Framtiden Management
Company LLC ("FMC") is a relying adviser under Rings Capital
Management LLC ("Rings"). Rings is the investment adviser to
Framtiden LP and First Framtiden LP; FMC is the investment adviser
to Framtiden Holdings LP. The purpose of this press release is
solely to provide information to Swedish Match shareholders
regarding Framtiden's view on the current public takeover offer for
all shares in Swedish Match by Philip Morris, which shall be
evaluated independently by Swedish Match shareholders. Framtiden
has no intentions to directly or indirectly, alone or together with
someone else, exert any kind of control over Swedish Match or its
operations.
The information contained in this press release has not been
independently verified and is subject to change without notice.
Neither Framtiden, nor its representatives and affiliates or any
other party, is under any obligation to update or keep current the
information contained herein. Accordingly, no representation or
warranty, express or implied, is made or given by or on behalf of
Framtiden or any other party (or any of their respective members,
directors, officers, employees or any other person) as to the
accuracy, completeness or fairness of the information or opinions
contained in this press release, and any reliance you place on such
information or opinions will be at your sole risk. Neither
Framtiden nor any other party (or any of their respective members,
directors, officers, employees or any other person) accepts any
liability whatsoever for any loss howsoever arising from any use of
this press release or its contents or otherwise arising directly or
indirectly in connection therewith. By reading the press release,
you acknowledge that you will be solely responsible for your own
assessment of the market and market position of Swedish Match and
that you will conduct your own analysis and be solely responsible
for forming your own view of the potential future performance of
Swedish Match and its business.
This press release contains forward-looking information based on
the current expectations of Framtiden. Although Framtiden deems
that the expectations presented by such forward-looking information
are reasonable, no guarantee can be given that these expectations
will prove correct. Accordingly, the actual future outcome could
vary considerably compared to that stated in the forward-looking
information, due to such factors as changed market conditions for
Swedish Match's products and more general factors such as business
cycles, markets and competition, unforeseen commercial or
operational implications attributable to Covid-19, changes in legal
requirements or other political measures, and fluctuations in
exchange rates. Framtiden undertakes no obligation to update such
forward-looking statements. This press release contains market data
and industry forecasts, including information related to the sizes
of the markets in which Swedish Match and its subsidiaries
participates. The information has been extracted from a number of
sources. Unless a specific is source is referenced, all market
share information/data is based on Framtiden's estimates. Although
Framtiden regards these sources as reliable, the information
contained in them has not been independently verified and therefore
no assurance can be given that this information is accurate and
complete. In addition to the above, certain data in the press
release is also derived from estimates made by Framtiden. The
information and opinions contained in this press release are
provided as at the date of this press release and are subject to
change without notice.
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