Baltika completes purchase of Pikra Brewery shares

11/04/05 Baltika Brewery has completed the deal on purchase of Pikra Brewery shares under which 16.38% of Pikra ordinary shares were acquired.

Thus the implementation of the strategy announced by Baltika's and Pikra's majority shareholder - BBH, to strengthen its position on the Russian market and to increase coordination of collaboration between BBH breweries has continued. The deal is aimed at optimization of BBH shareholding structure. Many steps have already been taken to improve the company's operations: agreements between different BBH breweries have been made on co-production, joint distribution, joint media buying, raw materials purchasing etc. 

ВВН (Baltic Beverages Holding AB) is the leader of the Russian beer market. It operates 18 breweries: ten in Russia, three in Ukraine, four in the Baltic States and one in Kazakhstan. BBH is the market leader also in Baltics and Kazakhstan. BBH is a 50:50 owned joint venture between Carlsberg A/S and Scottish & Newcastle plc. 

Baltika Brewery incorporates 5 breweries (in St.Petersburg, Rostov-na-Donu, Tula, Samara and Khabarovsk), 2 malt houses (in St.Petersburg and Tula) and 32 distribution centers. The company produces 36 beer brands and sub-brands and 5 varieties of non-alcoholic drinks. It exports its products to 37 countries. Since 1993 Baltic Beverages Holding AB (BBH) is Baltika's majority shareholder with 75.4% ownership. Baltika's market capitalization is around $2.5bn.