August 14 2007, 09:23

Pepsi Buys the Greatest Russian Producer of Juices

The leader of global juice market - PepsiCo company has agreed to purchase more than 70% of shares from the largest juice producer in Russia JSC Lebedianskiy. The amount of the deal can account to $ 1.5-2 billion.

According to the representative of an investment company data, who is close to the negotiation process, the buyer is ready to pay more than $ 1.5 billion for 76.13% of Lebedianskiy (the turnover of additional 23.87% of shares takes place in RTS* and MMVB*). This information is confirmed by the high-ranking Lebedianskiy manager, as is written in Vesty.

"Only five persons know about the sale in the Company under preparation. Nothing has been announced to the rest, but many employees are involved in search of new jobs", he added. Alexandr Kostikov, Lebedianskiy's Public Relations Director retrained from comments, and Alexandr Shalynev, Foreign Affairs Vice-President of PepsiCo's Russian Department, did not start discussing these "market runors." The main shareholders of Lebedianskiy Company are its former chairperson, Deputy of Gosduma Nikolay Bortsiv (30%) and his son Yuriy Bortsov (25.1%), heading the Board of Directors. The members of Board of Directors Olha Beliavtseva and Dmitriy Fadeiev have 18.4% and 2% respectively.

23.87% of shares belong to RTS and MMVB. The level of capitalisation accounted to $ 1.939 billion as to August 10. For the past two months the cost of Lebedianskiy shares went up by almost 18% to about $ 95 for a unit.

On the 7th of June, 2007 it became known that PepsiAmericas and PepsiCo concluded the agreement about their mutual purchase of 80% of OJSC Sandora for $ 542 billion.

OJSC Sandora (in Nikolaiev) is the leading producer of branded packed juices and nectars in Ukraine. The Company was established in 1995.

The production capacities of Sandora include a fruit and vegetable processing and juice production factory (village Nikolaievskoie in Nikolaiev Oblast), a juice production factory (village Meshkovo-Pogorielovo in Nikolaiev Oblast), two fruit and vegetable processing factories (village Rodnikovoye ARK, and village Kazachji Laheri in Kherson oblast). About 25% of Sandora's production is exported. According to the year 2006's results, the Company ranks 47% of total Ukrainian juice production market.

In the first half of the year 2007 Sandora increased its production (juices plus wines) volumes by 36.5% - to 247.4 mln litres.