TALLINN - A subsidiary of Carlsberg A/S, the largest brewer in northern Europe, has moved to consolidate its controlling ownership of Saku Olletehas (Saku Brewery) by offering to buy out shares of minority stakeholders.
On May 9, 2008 Carlsberg Breweries A/S, a 100 percent subsidiary of Carlsberg, acquired the remaining 50 percent of shares in Baltic Beverages Holding. Prior to the deal the stake had been owned by Scottish & Newcastle.
As a result of this transaction Denmark-based Carlsberg ac-quired majority control over Saku Brewery, Estonia's largest beer producer.
By law Carlsberg must offer to buy out shares of minority stakeholders in Saku, and the company has offered 194.06 kroons (12.4 euros) per share, according to the Tallinn Stock Exchange.
The offer started on May 29 and will last until June 26.
The total value of the shares in Saku Brewery not owned by Carlsberg is approximately 390 million kroons, according to reports.
Carlsberg said in a statement that the goal of the buyout was not to delist the company but to adhere to Estonian law.
Saku Brewery announced on May 28 that it posted a first quarter profit of 20.9 million kroons (1.3 million euros), a 52.4 percent increase over the same period in 2007.
The company said in a statement that the difference was the result of income tax expenses incurred in the first quarter of 2007.
First quarter revenue on the Estonian market amounted to 157.3 million kroons, up by 2 million kroons, or 1.3 percent, over the first quarter of 2007. Year-on-year growth, by contrast, was 38.4 percent.
The deceleration in revenue growth results from the sharp slowdown in economic growth and the ensuing changes in consumer behavior in Estonia. Also, sales restrictions after 8 p.m. imposed by municipal governments affected sales, the brewery said.
Saku Brewery, which dates back to 1820, is the largest and oldest of the Baltic state's breweries. Its Saku Originaal has been the most popular brand in Estonia since 1995, according to Carlsberg's Web site.
