Carlsberg to Acquire Full Control of Baltika
Carlsberg Group intends acquiring the remaining 15% stake in its Russian subsidiary, Baltika Breweries, for up to DKr6.5 billion (Eur870 million). The move will involve a delisting of Baltika.
The net cost to Carlsberg for increasing its ownership from around 85% to 100% in 2012 and beyond will be a maximum of DKr4.4 billion due to a positive impact from financial arrangements. Full ownership of Baltika will give Carlsberg greater operational flexibility. When completed, the transaction is expected to be immediately earnings-enhancing.
Russia is the world’s 4th largest beer market and Carlsberg firmly believes in the long-term market and profit pool growth opportunities. The transaction is in line with the Carlsberg’s strategy of having 100% ownership of its most important subsidiaries to achieve greater operational flexibility.
By having 100% ownership of Baltika, the company can be fully integrated into the Carlsberg Group which will speed up the implementation of decisions and also make Baltika a vital part of the back-end integration which Carlsberg has accelerated recently.
