March 20 2008, 09:04

PepsiCo buys "Lebedyanskiy" shares

Today the purchase of "Lebedyanskiy" company, the largest juice producer in Russia by American PepsiCo may be announced.

One of PepsiCo partners and Russian financial specialist, who works with one of the parties, provided this information to "Vedomosti". "Renaissance Capital" consults PepsiCo, Deutsche Bank consults "Lebedyanskiy", he tells. One more investment banker participates in this deal - he says that PepsiCo is purchasing "Lebedyanskiy" shares "with a great bonus to the market price"; the deal will be the largest in this industry in Russia. At the same time, the close to PepsiCo source said yesterday in the evening that the terms and the sum of the deal have not been totally defined yet: PepsiCo does not want to purchase business on baby food production of "Lebedyanskiy" company, but this business can not be easily separated because of technological reasons. "There has been no deal of such structure in Russia: we have three scenarios, and no final decision has been made yet", the source explained. He later said that the sum would amount to $2 billion with the account of "Lebedyanskiy" debt. As of October 1st 2007, the company's responsibilities on credits and loans amounted to $280 mln. The production of baby food and potable water won't be included to the deal, the interviewee of "Vedomosti" added. We were not able to confirm this information yesterday.

Baby food generates 12% of profit of "Lebedyanskiy" company. The co-owner and the top manager of two Russian baby-food producers told earlier that the founders of "Lebedyanskiy" company want to keep baby food business as the most perspective and to invest a part of PepsiCo funds to its development.

Earlier the source of one of Russian banks told "Vedomosti" that PepsiCo purchases "Lebedyanskiy" for $110 per share; this price corresponds to the estimation of the whole company to be worth for $2.24 billion. This is really a significant bonus even to the current price of "Lebedyanskiy" company ($91.5 mln. yesterday in RTS), which has already considered the rumor about the sales to PepsiCo. All competitors of "Lebedyanskiy" were purchased for a cheaper price. In October 2007 the investment foundation Lion Capital purchased 75.001% of "Nidan" company, which was estimated to be worth to $530 mln. In 2005 Coca-Cola purchased "Multon" for $501mln., in 2007 it purchased "Aqua Vision" for $191.5 mln.

"PepsiCo will have to pay a high price for "Lebedyanskiy", but, there is no other way to enter Russian juice market", Andrey Yanovskiy, General Director of "Nidan" company thinks. PepsiCo will become the market leader and will be ahead of its main competitor Coca-Cola company, David Yakobashvili, the Chairman of the Board of Directors, "Wimm-Bill-Dann" company adds.

The representatives of PepsiCo and "Lebedyanskiy" made no comments.