Carlsberg ups stake in Baltika to 96.7%, secures squeeze out right
MOSCOW. Aug 21 (Interfax) - Danish beer brewing concern Carlsberg has raised its stake in OJSC Baltika Brewing Company from 84.7% to 96.7%, thereby securing the right to a squeeze out, the Russian company said in a Tuesday statement.
In the framework of its voluntary offer, the company Baltic Beverages Holding (a 100% Carlsberg subsidiary, through which it owns about 85% of Baltika's stock) bought back 12.05% of Baltika shares.
The company registrar will continue to transfer shares according to applications received by August 24, after which, by September 8, it will pay for the shares.
Once the procedure is complete, Carlsberg plans to launch the squeeze out process for the remaining stock in the Russian brewer. The Danish concern's consolidation of 100% of the company will serve to fully integrate Baltika into the Carlsberg group, which will allow it to "benefit from a number of initiatives and opportunities," the statement said. In particular, management efficiency will be raised, which will provide Baltika with major operational flexibility.
In addition, the company reaffirms its intentions to invest more in its business in Russia, which will positively affect the jobs and overall economic situation in the regions of Baltika's presence.
Baltika will have the opportunity to sell its brands through other companies within the Carlsberg group, as well as use the Danish concern's distribution network. "The Baltika brand is one of the Carlsberg company's leading international brands, and Carlsberg intends to further invest in the brand," the statement read.
According to data from the end of the second quarter, Baltika's charter capital is divided into 156,087,093 ordinary shares.
As a result of the voluntary offer, Baltic Beverages Holding now owns 150,886,725 Baltika shares, and another Carlsberg structure - Holsten-Brauerei Aktiengesellschaft - owns 158,782 shares. Therefore, Carlsberg owns a total of 151,045,507 Baltika shares through its subsidiaries.
In May, Baltic Beverages sent the Russian Federal Financial Markets Service (FFMS) a voluntary offer to buy back 15% (24,116,137 shares) of Baltika. The offer was delivered to the company's minority shareholders on May 31, and applications for the buyback were taken from June 1 to August 9, inclusive.
The price of the buyback was set at 1,550 rubles per share. Baltika's board of directors recommended that its shareholders accept Carlsberg's offer.
Carlsberg has voiced its intentions to consolidate 100% of Baltika's stock.
In addition, Baltika said in its statement that the Moscow stock exchange has approved the company's delisting. October 4, 2012 will be the last day of trading in Baltika stock.
Baltika manages 11 beer breweries in nine Russian regions, as well as a brewery in Azerbaijan.
Carlsberg has operations on the Western and Eastern European markets, as well as in Asia. The concern's portfolio contains over 500 beer brands, including Carlsberg, Tuborg, Baltika and Kronenbourg 1664.