Russia: Baltic Beverages Holding addresses publicly shareholders

Baltic Beverages Holding, the joint venture of Carlsberg and Scottish & Newcastle, has on August 17 published an open letter to the minority shareholders in its subsidiary companies in Russia. The letter relates to the integration of the businesses and the purchase of shares from Hartwall Capital.

The letter confirms that one shareholder in the Baltika business - Hartwall Capital - has decided to sell its stake of just over 4 percent. Hartwall Capital has offered these shares to BBH, which has acquired them.

BBH understands that whilst Hartwall Capital is entirely confident of its legal position, it believes that it may be drawn into protracted, spurious and unproductive legal proceedings in Russia and on this basis has decided to sell its stake in Baltika.

19 August, 2005