Altria To Convert Non-voting Shares In Juul To Voting Ones

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Altria Group Inc mentioned on Thursday it could convert its non-voting shares in Juul Labs Inc to voting shares, days after the tobacco big took one other billion-dollar hit to its 35% stake within the e-cigarette maker.

The corporate mentioned it doesn’t intend to train its further governance rights obtained upon conversion, together with the correct to elect administrators to Juul’s board, pending the end result of a U.S. Federal Commerce Fee (FTC) litigation.

Altria additionally doesn’t intend to vote its Juul shares apart from as a passive investor throughout the lawsuit.

The FTC in April filed a criticism aimed toward forcing Altria to promote its funding in Juul, citing competitors issues.

The Marlboro cigarette maker invested $12.8 billion in late-2018 for a minority stake in Juul by non-voting shares, with their conversion to voting shares linked to antitrust clearance.

Altria final month took a $2.6 billion hit to the funding, lowering the worth of the stake to $1.6 billion.

Shares of Altria, down 20% this 12 months, have been marginally decrease in premarket buying and selling on Thursday.

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