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. Last Updated: 07/27/2016

Baltika Shareholders Secure Review of Brewery Buyout

Baltika said Thursday that it had reviewed the terms of a plan to bring three small Russian brewers -- Pikra, Vena and Yarpivo -- under its roof.

The announcement comes after minority shareholders in Baltika objected to the terms proposed for the integration of the Pikra brewery.

The integration of the three small brewers was part of a plan spearheaded by Baltic Beverages Holding, or BBH, to consolidate its Russian breweries. BBH owns a majority stake in both Pikra and Baltika.

BBH will now take Baltika shares instead of cash for its stakes in the three breweries, Baltika said in a statement Thursday.

Baltika also plans to appoint an unnamed independent appraiser to value Pikra, Vena and Yarpivo. The proposed $67.5 million price tag for Pikra had been a sticking point for some minority shareholders.

"The willingness of BBH to review the consolidation framework shows that they acknowledge minority shareholders," said Marat Ibragimov, a UralSib analyst.

BBH is jointly owned by Scottish & Newcastle and Carlsberg.

Baltika's plan to buy Pikra for $67.5 million was voted down by 51 percent of Baltika's minority shareholders in July. Since then, some minority Baltika shareholders have been vocal in trying to annul the result of that vote, claiming unauthorized parties had participated.

BBH spokeswoman Linda Bain told The Moscow Times in July that the holding did not plan to revise Pikra's price tag.

After the consolidation of BBH's assets, shareholders in the three small breweries and Baltika will now be able to choose between taking shares of the "enlarged Baltika" or taking cash, Baltika said in a statement.

Baltika spokesman Alexei Kedrin denied that the decision to take shares as opposed to cash was related to the dispute with minority shareholders.