EUROPE/US: CEDC “welcomes” Russian Standard stake purchase
Russian Standard buys 9.9% of CEDC
Russian Standard Vodka has acquired just under 10% of Central European Distribution Corporation.
The Russian company, owned by entrepreneur Roustam Tariko, has confirmed to just-drinks today (30 November) that it completed the purchase of 9.9% of CEDC yesterday. The stake is the maximum any one shareholder can acquire without triggering a shareholders rights plan, introduced by CEDC in September.
“Cooperation with CEDC will improve our market share in Poland, the fifth largest vodka market, as well as in other Central/Eastern European markets,” a spokesperson for Russian Standard told just-drinks today. The spokesperson also said that the company “plans to become an important player in the low- and middle-price vodka segment in Russia”. The company also intends to enter the wine sector in Russia, the spokesperson added, noting that CEDC-owned Whitehall Group, a drink distributor in Russia, “will help us” and has "unique market experience" in this area.
When contacted by just-drinks today, CEDC's president, William Carey, welcomed Russian Standard's move. “We are pleased to have among our shareholders a company with such a strong standing in one of our key markets,” he said.
US-based CEDC, which operates almost exclusively in Central and Eastern Europe, set up a 'poison pill' takeover defence earlier this year. This is designed to "deter coercive takeover tactics and to prevent an acquiror from gaining control of the company without offering a fair price to all of the company's stockholders”, it said at the time.
Central European Distribution Corp has done the only thing that looked viable, as 'brand Russia' in vodka moves a step nearer to reality....
Earlier today (23 April), Russian Standard finally got the okay to up its stake in Central European Distribution Corporation. The move, which could cost Russian Standard up to US$310m, could see the f...
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