Baltika Breweries is looking to launch a share buyback.

The Russian brewer, which is majority controlled by Carlsberg and Scottish & Newcastle's Baltic Beverages Holding joint venture, said today (28 August) that it has called a meeting of shareholders to okay the programme, with a deadline for votes on the move of 15 October.

Baltika's board said it plans to buy back up to 9.9m ordinary and up to 1.2m preference shares. The price of purchase would be RUB1,300 (US$50.55) for one ordinary share and RUB880 for one preference share.

BBH's current holding in Baltika would not be affected either way by the buyback.

The proposed move would result in increased profitability per share and an improvement in the capital structure, Baltika said. At the same time, shareholders would be able to sell their shares at a market rate without any expenses related to the sale.

"The board of directors of Baltika Breweries reconfirms its intention to remain a public company," the company clarified.