Altadis Closes Balkan Star Deal; Pays Euro 147 Million for 80.75% of the Company.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- On November 4th, Altadis has closed the acquisition of Balkan Star. All required authorisations having been granted, the Group acquired 80.75% of Balkan Star for a consideration of Euro 147 million on a cash free, debt free basis. The transaction is funded from existing Altadis credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . Altadis has extended the offer to the minority shareholders holding the remaining 19.25% of the share capital of Balkan Star on the same terms and at the same price per share that is paid to the controlling shareholders. That offer will be closed in December and is expected to bring Altadis shareholding very close to 100%. Also, the total consideration might be increased by up to Euro 20 million depending on Balkan Star's operational performance until the completion date. With sales of over 31 billion units in 2003, Balkan Star is the largest independent tobacco company in the fourth largest tobacco market in the world. Balkanskaya Zvezda, the flagship brand of Balkan Star, is the second largest cigarette brand in Russia with 21 billion units sold. Balkan Star operates one of the largest tobacco plants in Russia, located in Yaroslavl (270 km North of Moscow), with high quality manufacturing facilities and capacity exceeding 40 billion units. The Company has a significant distribution network covering major consumption areas in Russia. It has a staff of around 1,400 employees. For the year ended December 31, 2003, Balkan Star achieved net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of Euro 107 million with EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of Euro 18.2 million, representing a 17% margin (a). The company has net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. of ca. Euro 100 million. (a) As per Balkan Star's consolidated financials under Russian GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and translated into euros with average exchange rate for 2003 of 34.7 RUR/Euro |
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