UPDATE 1-Imperial Brands to sell premium cigar business in $1.33 bln deal

(Reuters) – Tobacco company Imperial Brands (IMB.L) is selling its premium cigar business for 1.23 billion euros ($1.33 billion) to a group of private investors as it looks to cut debt, the company said on Monday.

The Winston and Gauloises Blondes cigarette maker said the sale will take place in two parts, with Gemstone Investment Holding buying the USA unit for 185 million euros, while Allied Cigar Corp will buy the rest for 1.04 billion euros.

“This disposal reinforces our strategic ambition of becoming a leaner and more agile organisation,” said joint interim chief executives, Dominic Brisby and Joerg Biebernick.

AZ Capital is advising Imperial Brands, whose stock was up 3.7% at 1,604 pence as of 0941 GMT following the announcement.

Reporting by Samantha Machado in Bengaluru; Editing by Aditya Soni and Saumyadeb Chakrabarty