6 Comments

great write-up !

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Thank you, Andrea.

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I’ve owned IMB for years and never knew about Logista.. thanks.

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Thanks for reading, Christian.

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I love how you address head on questions that your readers might have.

According to Bloomberg consensus estimates, IMB LN trades at 6x forward adj earnings, whereas LOG SM trades at a bit less than 11x. The obvious question is why doesn’t Imperial sell its stake. You provide 2 reasons — cheap short term financing and hedging declining cigarette volumes.

Thank you!

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Thank you, Tian. With full context, it makes total sense why Imperial pared down its stake from the initial size and retained 50.1% - Retaining full control while the sub has independent leadership, allowing both to focus on their core competencies. It's terribly sensible and symbiotic.

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