US/RUSSIA: CEDC accepts Roust Trading deal
By Andy Morton | 11 March 2013
 |
CEDC is slowly ceding control to the owner of Russian Standard |
The owner of Russian Standard is on course to take an 85% stake in Central European Distribution Corporation (CEDC), a week after SPI Group signalled a swoop for the debt-laden spirits maker.
CEDC said on Friday (8 March) it has agreed to Roust Trading's US$172m amended exchange offer tabled last week. Together with other moves, including diluting existing shareholders' stock to 5% of total equity, the offer will reduce CEDC's debt by about $635m, the company said.
The amended exchange offer expires on 22 March, CEDC said.
The news should interest SPI, who last Tuesday said it was considering a move for CEDC. The Luxembourg-based, Russia-originated company owns two sets of CEDC notes and claimed to be in talks with “a few strong financial players” in Russia over a deal.
CEDC has been struggling with debt, resulting in the firm handing operational control to leading shareholder and Russian Standard owner Roustam Tariko last month in return for US$65m. Tariko also owns Roust Trading.
CEDC said on Friday that its restructuring will not affect the company's operations in main markets Poland, Russia, Hungary or Ukraine.
To read CEDC's official statement, click here.
Expert analysis
Spirits in Poland
In line with growing sophistication and diversification of spirits consumption, spirits sales are becoming increasingly heterogeneous. A considerable group of Polish consumers still strongly follows the westernisation trend. These consumers are strongly aspirational and typically enjoy demonstrating their status. The combination of these factors results in the growing popularity of brown spirits. For example, whiskies and cognac strongly benefit from this trend. The predominant vodka category...
Sectors: Mergers & acquisitions, Spirits
Companies: CEDC
View next/previous articles
Currently reading -
US/RUSSIA: CEDC accepts Roust Trading deal
11 Mar 2013 -
Related research
Spirits in Russia industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2006-10, and forecast to 2015). The profile also contains descriptions of the leading players...
Spirits in Europe industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2006-10, and forecast to 2015). The profile also contains descriptions of the leading players...
In line with growing sophistication and diversification of spirits consumption, spirits sales are becoming increasingly heterogeneous. A considerable group of Polish consumers still strongly follows the westernisation trend. These consumers are stron...
Related articles
US: CEDC sees NASDAQ delist shares
The NASDAQ stock market has delisted the shares of Central European Distribution Corp, after the company filed for bankruptcy last week.
just For Subscribers - The week in drinks
Here are the ten most viewed, subscriber-only items on just-drinks this week:
There are currently no comments on this article
Be the first to comment on this article