Khyber Tobacco signs MoU with Korea’s KT&G for Pine Passion Sky licence
Company says proposed royalty arrangement may allow manufacture and marketing of KT&G’s cigarette brand in Pakistan and other mutually agreed territories, subject to final agreements and regulatory approvals
Khyber Tobacco Company Limited (KHTC) has signed a Memorandum of Understanding (MoU) with KT&G Corporation of the Republic of Korea for a proposed royalty licence arrangement covering KT&G’s cigarette brand “Pine Passion Sky.”
In a material information notice sent to the Pakistan Stock Exchange Monday, KHTC said the MoU relates to the grant of a royalty licence for the Korean company’s cigarette brand.
The company said the MoU will be followed by a formal agreement on the proposed licensing arrangement.
Under the proposed arrangement, KHTC intends to manufacture and/or market “Pine Passion Sky” in Pakistan and other territories that may be mutually agreed by the parties.
The proposed transaction remains subject to the signing of definitive agreements, applicable regulatory approvals and customary commercial conditions.
KHTC said the announcement of the signing of the formal agreement will be made promptly through PUCARS of the PSX.
The company said the collaboration has the potential to strengthen its product portfolio, improve its competitive position and support future business growth.
KHTC added that further details, where required, will be disclosed under applicable legal and regulatory requirements after execution of definitive agreements or any material development.
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