Mafco to Offer Shares in Its Cigar Unit

Mafco Consolidated Group Inc. said it plans to sell about 4 million shares in its Consolidated Cigar Holdings Inc. unit for about $98 million, cashing in on strong investor interest in cigar makers. Mafco, which is controlled by financier Ronald Perelman, also said it plans to sell $150 million in notes that can be converted into Consolidated Cigar’s common shares. At the same time, Mafco said its parent company, Mafco Holdings Inc., plans to take the company private by acquiring the 15% it doesn’t already own for about $38.50 a share. Mafco Consolidated owns about 80.2% of Consolidated Cigar, the maker of Montecristo and Dutch Masters brands. Shares in Mafco Consolidated rose $8.125 to $35.25 on the NYSE; Consolidated Cigar’s fell 12.5 cents to close at $24.375, also on the NYSE. Mafco Consolidated set a preliminary target price for the cigar company’s shares of about $24.50.