Brooke Group Announces Closing for Liggett/Philip Morris Brand Transaction.MIAMI--(BUSINESS WIRE)--May 24, 1999-- Brooke Group Ltd. (NYSE NYSE See: New York Stock Exchange : BGL BGL The pre-July 1999 ISO 4217 currency code for Bulgarian Lev. ) today announced that Philip Morris has closed on the exercise of an option to buy three of Brooke's subsidiary Liggett Group's cigarette brands, L&M, Chesterfield and Lark. At the closing, Liggett received $145 million. As previously announced in November 1998, Liggett entered into an agreement for the purchase by Philip Morris of options to buy three of Liggett's cigarette brands for $300 million. In December 1998, Liggett received as option fees the first $150 million in cash from Philip Morris. Pursuant to the agreement, Liggett has the right to receive an additional $5 million within 11 years. Brooke is a holding company which owns Liggett Group Liggett Tobacco, formerly known as Liggett & Myers Tobacco Company is the 4th largest tobacco company in the United States. Its headquarters are located in Durham, North Carolina. Its CEO is Bennett S. LeBow. Inc. and controlling interests controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Liggett-Ducat Ltd. and New Valley Corporation. |
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