Russia: Baltika to reform Yarpivo, Vena, and Pikra in its branches

Baltika Breweries OJSC, upon the merger, will reform Yarpivo OJSC, Vena OJSC, and Pikra OJSC in its branches, as AK&M was informed by Baltika, AK&M informed July 20.

The branches will be named Baltika-Yaroslavl, Baltika-Voronezh, Baltika-Chelyabinsk like other breweries belonging to the Company: Baltika-Tula, Baltika-Samara, etc. Yarpivo's facilities, the Voronezh Brewery among them, are situated in Yaroslavl and Voronezh; Vena has its facilities in Chelyabinsk.

Shareholders of Yarpivo, Vena, and Pikra will discuss the merger with Baltika on August 21, 2006. As Baltika's President Anton Artemiev said earlier, the Company will take part in voting on this issue.

Baltika has recently increased its interest in the authorized capital of Vena from 0.17% to 92.76%, of Pikra - from 21.59% to 91.9%, of Yarpivo - from 0.03% to 87.19%. Baltika consolidated the shares as a result of a share exchange when the major shareholder of the four companies - Вaltic Beverages Holding AB (ВВH) - exchanged its interests in Pikra, Vena, and Yarpivo for newly issued shares of Baltika.

The merger is planned to be completed by the end of 2006.
Baltika is the largest Russian beer producer. BBH holds 75.4% of its authorized capital (83.6% voting shares, 25.6% preferred shares). Baltika's net income under IFRS in the IQ grew by 3% to EUR 24 million. Baltika's share of the market in the IQ was 23%. Baltika's proceeds in the IQ rose by 13.8% to EUR 188.2 million from EUR 165.4 million, EBITDA grew by 11.7% to EUR 50.2 million.