Donskoy Tabak could be put up for sale - reports
MOSCOW. Nov 22 (Interfax) - Russian cigarette maker Donskoy Tabak , controlled by MP Ivan Savvidi, could soon change owners, the Russian Tobacco industry portal said.
Rumors of preparations to sell the company have been actively circulating at international tobacco exhibitions in November. According to the rumors, several major players are contending for the last independent asset in the industry, including the Chinese National Tobacco Corporation, an unnamed South Korean company (not KT&G) and one of the leading transnational companies.
A Kommersant newspaper source said that the most likely purchaser will be British Imperial Tobacco. If a sale does occur, Imperial Tobacco's market stake will exceed 10%; however, this will still not allow Imperial Tobacco to meaningfully compete against the trio of leaders - JTI, Philip Morris and BAT.
Savvidi told Kommersant that a sale of Donskoy is possible, but he did not comment further.
Donskoy Tabak is part of the Agrokom Group. In 2010 it had net profit of 907 million rubles and sales of 16.7 billion rubles. It produced 26.1 billion cigarettes under the Donskoy Tabak, Nasha Marka, 21 Vek, Richmond, Kiss, Prima, Pyotr Veliky and other brands.