Tokyo, February 21, 2008 – Japan Tobacco Inc. (JT) (TSE: 2914) announced today that Gallaher Limited (Gallaher), a JT International (JTI) Group company, has agreed with R.J. Reynolds Tobacco C.V. (RJRTCV) that, following the termination of their joint venture, Gallaher would pay a total of €265 million to RJRTCV as a Valuation Payment, in accordance with the terms of the joint venture agreement.
In 2002, RJRTCV and an affiliate of Gallaher formed a Swiss joint venture, “R.J. Reynolds – Gallaher International SARL” (RGI), with the aim of manufacturing and marketing American-blend cigarettes in certain European markets. Each party holds a 50 percent stake in the joint venture. [...]