British American Tobacco has bought a Bosnian regional government's 39.9 percent stake in tobacco factory Fabrika Duhana Sarajevo (FDS) for 42.7 million KM, BAT said on Thursday.
Federation of BiH is attempting to privatize a number of state-owned enterprises to plug a hole in its budget.
The world's second-biggest cigarette maker said in a statement it was willing to take over the remaining stake in the Bosnian company for 83.5 KM per share, the price per share it paid the regional government.
The remainder of FDS is owned by local subsidiaries of Austria's Raiffeisen Bank and Italy's UniCredit SpA, as well as investment funds and small shareholders.
BAT already owns plants in Serbia and Croatia.
FDS’ shares were trading at 65.98 KM on Thursday, up 3 percent on Wednesday's close. The company has a market capitalization of 81.98 million KM.
