Russia approves sale of Carlsberg assets to Russian firm VG Invest for 34 bln rubles

MOSCOW. Dec 3 (Interfax) - The Russian government's commission for control over foreign investments has approved the sale of Carlsberg's Baltika Breweries for 34 billion rubles or $320.75 million to the Russian JSC VG Invest, Reuters reports, citing the minutes of the commission meeting.

The proposed price implies Carlsberg selling at a significant discount. Carlsberg reported in February 2023 that its net assets in Russia were worth 7.52 billion Danish kroner ($1.06 billion) as of December 2022. The deal also assumes that Carlsberg will receive Baltika's stakes in assets in Azerbaijan and Kazakhstan - Baku-Pivo, Carlsberg Azerbaijan, Carlsberg Kazakhstan - in exchange for selling 100% of the subsidiary Hoppy Union to the investor.

VG Invest was registered in August and is managed by Yegor Guselnikov, Vice President at Baltika. Guselnikov also co-owns Brewery Development Centre (BDC) with Alexander Tolmachev who, according to his social media profile, used to work for Heineken in Russia.

BDC owns a number of companies established this year, including New Breweries LLC and Project 650. The latter is run by Alexei Pyatkin, who is also CEO of Carlsberg-owned Hoppy Union.

Guselnikov joined Baltika in 2005 as a sales representative in the Siberia and Far East region and subsequently held various positions in the region, including Head of Modern Trade Sales Department and Deputy Sales Director. He headed the Hypermarket Development Group in 2014, after moving to St. Petersburg, and was then appointed National Key Account Director. In February 2017, he took up the position of Modern Trade Sales Director.

Russian President Vladimir Putin signed a decree on December 2 removing Carlsberg's former assets in Russia from temporary government administration. This concerns a 98.56% stake Baltika Breweries LLC, owned by Carlsberg Sverige Aktiebolag; 1.35% of Baltika Breweries LLC, owned by Hoppy Union LLC; and 0.09% of Baltika Breweries LLC, as owned by Carlsberg Deutschland GmbH. These assets were placed under the Russian Federal Property Agency's (Rosimushchestvo) temporary administration by a presidential decree of July 16, 2023.

Baltika is Russia's second largest brewing company. It operates eight breweries.