Lorillard Stockholders Okay Merger With Reynolds American

(RTTNews) - Tobacco company Lorillard Inc (LO) on Wednesday said its shareholders voted overwhelmingly to approve the company's merger with Reynolds American Inc (RAI).

The final results indicate that more than 98% of the shares voting at the special meeting voted in favor of the merger, representing about 80% of all outstanding shares, Lorillard said.

"I want to thank our shareholders for their continued support of this transaction, which will not only deliver significant value to Lorillard shareholders, but will also benefit our customers, consumers and employees," said Murray Kessler, Lorillard's chairman, president and chief executive officer.

In mid-July, Reynolds American, the parent company of R.J. Reynolds Tobacco Co, agreed to acquire Lorillard in a cash-and-stock deal valued at $27.4 billion. Lorillard shareholders will receive, for each Lorillard share, $50.50 in cash and 0.2909 of a share in RAI at closing.

The transaction remains subject to regulatory approval and the additional customary closing conditions contained in the merger agreement.

The merger is expected to close in the first half of 2015.