‘No doubt’ that bid for Aldeasa will be successful says Altadis Chairman

SPAIN. Altadis Co-Chairman Pablo Isla said today that he has “no doubt” that the company’s joint bid with Autogrill for Spanish travel retailer Aldeasa will be successful.

The tobacco company’s surprise partnership with Italian catering and retail company Autogrill holds the inside running in the hotly-contested takeover battle for Aldeasa.

The alliance has tabled a €33-a-share bid for the retailer, topping earlier proposals by the GEA financial consortium and Swiss travel retailer Dufry. The Autogrill/Altadis offer currently awaits clearance by the Spanish stock market regulator CNMV and the Brussels competition authorities.

Besides offering the highest price to date, Autogrill and Altadis have not stipulated a minimum shareholder acceptance level. Crucially in terms of the offer’s chances of success, Altadis is Aldeasa’s lead shareholder with a 34.6% stake.

Isla made his comments today after revealing Altadis’s annual results for 2004. In reply to a question he said he was unaware of any government intervention in the Aldeasa takeover.

The company’s net income rose +41% year-on-year to €413 million. Sales rose +3.9% to €3.5 billion, and EBITDA was up +3.3%. Acquisitions helped falling sales in core markets such as France, hit by tax hikes, while net profits were helped by one-off restructuring charges in 2003.

Altadis said that 2005 would be heavily focused around integrating two recent acquisitions – Russian cigarette company Balkan Star and Italian distribution company Etinera.

In related news, Spain’s state holding company SEPI today reiterated its plans to sell its remaining stakes in Altadis (2.1%), Aldeasa (5.1%) and Spanish airline Iberia (5.3%). The divestments will all be made this year. SEPI already has government approval to sell these holdings.

CHRONOLOGY OF A TAKEOVER: HOW THE ALDEASA STORY HAS UNFOLDED TO DATE

Broker sells 1.8% of Aldeasa – 01/02/05

Aldeasa shares rise sharply on Autogrill bid – 31/01/05

Latest update: Aldeasa ownership in the balance as investors launch shock takeover bid – 13/12/04

Aldeasa takeover bid underlines private equity interest in upswinging market – 14/12/04

Altadis holds the key to Aldeasa sale as retailer’s share price closes on high; touted Imperial merger clouds picture – 15/12/04

Aldeasa shares close at near high; lead bidder says “no plans” to raise offer; politics the key say insiders – 16/12/04

Dufry parent Advent eyes Aldeasa bid – Spanish newpaper quotes ‘Dufry sources’ – 19/01/05

Advent International confirms interest in Aldeasa – 19/01/05

Shares in Altadis and Aldeasa rise as interest intensifies in Aldeasa takeover saga – 20/01/05

Advent International bid for Aldeasa “˜Friday or Monday’ – Spanish report – 21/01/05

Expansión says Vista and CVC Capital Partners alliance in place as bidders circle Aldeasa; Retailer’s stock closes at 5-year high – 22/01/05