News

Exclusive - RUSSIA: SPI Group sets up takeover bid for CEDC

Most popular

just-drinks interview - Monkey 47

Consumers need help in making healthier choices

Pernod is buying Malfy for the flavour - comment

Wine in 2021 - just-drinks predicts

Can 'community commerce' solve DTC woes?

MORE

SPI Group has joined a consortium to make a move for Central European Distribution Corp (CEDC), just-drinks can exclusively reveal.

//i4.progressivedigitalmedia.com/1/spi_logo.jpg

The Luxembourg-based firm, which owns the Stolichnaya vodka brand, confirmed to just-drinks today (14 March) that it is partnering with the A1 investment division of Alfa Group and Mark Kauffmann, the former owner of the Whitehall Group in Russia, to table a US$275m offer for CEDC. If accepted, the bid, which is expected to launch next week, would see the three companies take control of CEDC, which agreed earlier this week to hand 85% control to the owner of Russian Standard.

Speaking to just-drinks, the head of SPI Group, Val Mendeleev, said that the new offer would be a $50m increase on A1 and Kauffman's previous offer to CEDC, submitted earlier this month.

“We have met with CEDC board representatives and the company's management,” Mendeleev told just-drinks. “We are considering an improvement of our offer. Most likely, we will increase the offer by a further US$50m. The total cash offer will be in the region of $275m."

He added: “We first need to review certain financial figures. If all is in line with our expectations, the offer will be submitted in the next few days.”

CEDC has been struggling in recent months to raise funds to pay off a set of notes that mature this month. The US-based spirits firm has been working with Roustam Tariko, the owner of the Russian Standard vodka brand, to secure cash in return for stock. In January, CEDC handed Tariko operational control in return for US$65m in funds.

When contacted by just-drinks, a spokesperson for Russian Standard declined to comment on the development.

Last week, SPI announced that it was considering making a bid for CEDC. The company owns two sets of the notes that were launched by CEDC, and said that it was in talks with "a few strong financial players" in Russia over a move for the firm.


Related Content

SPI Group's Tulchan Scottish Gin - Product Launch - just-drinks EXCLUSIVE

SPI Group's Tulchan Scottish Gin - Product Launch - just-drinks EXCLUSIVE...

Roust to go it alone in UK as William Grant & Sons tie-up draws to a close

Roust to go it alone in UK as William Grant & Sons tie-up draws to a close...

SPI Group promises appeal after Stolichnaya court setback

SPI Group promises appeal after Stolichnaya court setback...

Roust Group's Siberian Troika vodka - Product Launch - Vodka in Russia data

Roust Group's Siberian Troika vodka - Product Launch - Vodka in Russia data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?