Orkla`s beverages division Pripps Ringnes to acquire brewery in Ukraina together with Hartwall



Date:Fre, 30/8 1996 Orkla

Orkla's beverages division Pripps Ringnes to acquire brewery in Ukraina together with Hartwall

At the General Meeting of Slavutich, the Ukrainian brewery, the company's management was authorized to carry out a private share issue to Baltic Beverages Holding AB (BBH).

As a result, BBH will become a 50-50 partner in the brewery. This will involve an investment by BBH totalling approximately MUSD 10. The receipts from the share issue will be invested mainly in improvements in technical facilities, as well as in the transfer of technological, logistical and marketing know-how. BBH has the intention, in consultation with both the brewery's management and other shareholders, to further increase its stake in the company.

BBH is a 50-50 joint-venture owned by Pripps Ringnes AB and Oy Hartwall Ab. Slavutich, which was founded in 1974, is located at the town of Zaporochy in southeastern Ukraine, about 600 kilometers from the capital Kiev. Around 30 million of the Ukraine's 50 million inhabitants live within a radius of 300 km of the brewery. The company is market leader in its part of the country and is the second largest brewery in the Ukraine. The brewery has an annual capacity of approximately 75 million liters and has about 600 employees.

BBH, which was established in 1991, is already majority shareholder in five breweries in the Baltic States and Russia, and is thus one of the largest players in the east European brewery industry. BBH is the majority shareholder in two Russian breweries, Baltika (St. Petersburg) and Yaroslavl, as well as in Saku (Tallinn, Estonia), Aldaris (Riga, Latvia) and Kalnapilis (Panevezys, Lithuania). Including Slavutich, total annual volumes for the BBH Group are estimated at nearly 400 million liters of beer, plus minor volumes of mineral water and soft drinks.

Lisbeth Lindberg, tlf (+47) 22 50 10 80, 29 August 1996

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