November 6 2007, 10:11

Lion Capital owns 75% shares of "Nidan"

Kelly Mayer, the partner of Lion Capital, told Vedomosti that the deal was bought in early October. The representatives of the new owner will soon occupy the majority of positions in the Directors Board of the Opened JSC "Nidan Juices", he adds. Maxim Arefyev, the Executive Director of the Investment-Banking Activities Department, "Troyka-Dialog" confirmed this information (this company consulted "Nidan" owners). Julia Vishnevskaya, the representative of "Nidan", pointed out that Mr. Mayer presented the consolidated position of both parties, so no further comments were necessary.

The parties do not release the sum of deal. The financial specialist worked with one of the deal parties; he said that this sum amounted to around $530 mln. Russian investment banker also mentioned the sum of $530 mln., although he did not participate in the deal.

Victoria Grankina, the Analyst of "Troyka Dialog", says that $530 mln. is an adequate price for "Nidan", taking into consideration that "Nidan" has been growing faster than the market in recent years. According to Mrs. Grankina, typically for such deals, the foundations count on the increase of the invested capitals in several times by the moment they leave the project.

Till recently Cyprian Nidan Holding Ltd. has owned 100% of Opened JSC "Nidan Juices". The beneficiaries were the founders of the company: Igor Shilov (55%), Leonid Shayman (35%) and Chaba Balyer (10%). Mr. Mayer specified that Lion Capital has purchased the majority stack of "Nidan" shares; the business founders preserved their shares. The specially created company purchased 100% of "Nidan" shares, and after that it sold a small package to the company founders - these are the explanations of a financial specialist who is working with one of the parties. The generated revenue will be invested into "Nidan" business development. This was the provision of Lion Capital. As a result, "Nidan" founders preserved 24.999%, the interviewee of Vedomosti adds.

Most probably, the founders of "Nidan" purchased shares for the same price as Lion Capital did, Alexey Krivoshapko, the Analyst of UFG, says. So, as a result of this deal they may have around $400 mln.

According to Mr. Mayer, Lion Capital is not going to consolidate "Nidan" business with Kyiv juice producer "Rosinka" (it was purchased in 2007 by Orangina, owned by Lion and Blackstone). The company strategy won't be changed, as Lion considers the current management as successful.