15 May 2004 16:26
Russian thirst slaker to float in London
Efes Breweries International, a leader in the growing Russian beer market, plans to float on the London Stock
Exchange, raising cash to fund its expansion in eastern Europe.
The company is 85% owned by Turkish brewer Efes Anadolu, which will not reduce its stake on flotation though it
expects to have its holding diluted by new shares.
EBI's Stary Melnik recently became market leader in the Moscow region, while its Efes Pilsener brand is a
leading premium beer. Russian drinkers, who already generate 60% of Efes's turnover, are increasingly turning to
internationally branded beer.
Sales volumes across Russia are forecast to grow by 9% a year for the next five years. EBI became the third largest
brewer in the market, behind market leader BBH - a joint venture between Scottish & Newcastle and Carlsberg - and
Sun Interbrew.
This week analysts at Deutsche Bank estimated that EBI was worth about pounds 290m. Rumours that the company, which
is registered in Amsterdam, was seeking a London listing have been circulating for more than a year.
Last year EBI, which has appointed Credit Suisse First Boston as adviser on the float, made profits before financial
and other charges of pounds 50m, on sales of pounds 150m. It has since almost doubled its capacity, mostly through
acquisitions including the Amstar brewery of Ufa, in the Urals.
EFI's decision to float came as C&C, the Irish cider and snacks group seeking a dual listing in Dublin and
London, priced its initial public offering for 176m shares at euros 2.26 - at the bottom of the indicative range
published earlier this month.
Last night Cantor Index was taking bets on C&C shares around a spread of euros 2.30 to euros 2.40, suggesting a
slight uplift on flotation.
C&C, which owns the Bulmers cider brand in Ireland as well as Ballygowan water and Tayto crisps, will have a
market value of euros 725m (pounds 490m). Chief executive Maurice Pratt said he was pleased, "particularly given
the volatile market conditions experienced this week".
The company will have a dividend yield of 5.5%.
Among the institutions said to have signed up to the float are Schroders and Legal & General.
[The Guardian] |
RUSSIA IN FACTS
