Philip Morris International, a unit of Altria Group, has made a $5.2 billion offer to purchase PT HM Sampoerna, Indonesia’s third-largest cigarette maker. The deal includes a-$1.13 a share offer for 40$ of the company’s stock and a public offer for the rest at the same price, a 20% premium to the March 10 closing price on the Jakarta Stock Exchange.

"Our investment in Sampoerna is a great opportunity to significantly expand our business in the world’s fifth-largest and growing cigarette market," the company said in the tender announcement Sunday.

Sampoerna, referred to the offer as "an excellent development for our shareholders and employees."

Sampoerna was able to sell 41 billion units last year, generating a revenue of about $1 billion. It has a 19.4 percent market share in Indonesia, reports Philip Morris ,and is most famous for its kretek, or tobacco cigarettes mixed with clove.

Altria is seeking to gain access to international markets with the acquisition. While in the US smoking rates are bound to decline over time, Indonesia has a large and increasing population, and high smoking participation rates among adults, being a golden opportunity for tobacco companies.