Russia: Baltika’s minority shareholders revolted about second postponement of court case

The minority shareholders of Scottish & Newcastle's half-owned Russian brewery, Baltika, hit out on September 23 at the second postponement of a claim brought in a St Petersburg court about allegations of irregular voting on a brewery restructuring plan, Business Scotsman communicated on September 24.

A statement issued by shareholders, following the second postponement of the case in two months on Thursday, said: "We note with considerable concern that the Court Hearing of the claim by minority shareholders of Baltika, which was due to be held on 22 September in St Petersburg, has for the second time been postponed at the request of the defendants.

"Yet again, the defendants have sought to delay this process, which we construe as a deliberate attempt by BBH ,the majority shareholder of Baltika, and its owners, S&N and Carlsberg, to frustrate the legitimate interests of the minority shareholders in seeking adequate protection of their rights under Russian law." It is understood the case has now been adjourned until 29 September after the Baltika registrar, ZAO Ediny, failed to turn up for the hearing this week. Lawyers for the other defendant, Hartwall Capital, were present, sources stated.

A source close to the minority shareholders who have launched the claim said: "This is yet more evidence that if S&N and Carlsberg believe peace has broken out on this issue and it will all be plain sailing from here they are very mistaken."

The legal dispute centres on votes cast by Hartwall Capital a former 4 per cent shareholder in Baltika, in favour of a corporate restructuring that would have seen Baltika take on more debt by acquiring another brewery in the chain, Pikra. Even though the EGM vote early last summer was lost, and Hartwall subsequently sold its stake in Baltika, the rebels maintain Hartwall should not have been allowed to vote in the first place because it was connected with S&N. Erik Hartwall is a non-executive director of the Scottish group. The rebels have said they are pursuing the court case anyway "so that there can be no repeat of these shenanigans".