Vector Group's Stock Up 6% After Agreeing To Be Acquired By JT Group In $2.4 Billion Deal -- MarketWatch

Vector Group Ltd.'s stock (VGR) jumped 6% early Wednesday, after the diversified holding company said it's reached an agreement to be acquired by Japan's JT Group in a deal with a total equity value of about $2.4 billion. Under the terms of the deal, JT, which makes and sells some of the best-known cigarette brands - including Winston and Camel outside the U.S. - will pay $15 a share in cash, equal to a 29.9% premium over the 60-day volume-weighted average share price. Miami-based Vector is a holding company for cigarette products and also has real-estate interests. The boards of both companies have approved the deal, which is expected to close in the fourth quarter. "Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market," said Howard M. Lorber, chief executive of Vector, in prepared remarks. Vector's stock has gained 24% in the year to date, while the S&P 500 has gained 17.3%.

-Ciara Linnane

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August 21, 2024 06:11 ET (10:11 GMT)

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