Russian Standard proposes acquiring 19.9% stake in Central European Distribution in exchange for assets of Russian spirits importer Roust, offer of assisting Central in restructuring its debt
MT. LAUREL, New Jersey
December 8, 2011
– Central European Distribution Corporation (NASDAQ: CEDC - News) today announced that its Board of Directors has received a letter, dated December 6, 2011 , from Russian Standard Corporation outlining a general proposal to acquire an additional approximately 19.9% of the Company's pre-dilution outstanding shares in exchange for assets of Roust Inc., a leading Russian importer of premium spirits, and to assist CEDC in restructuring its outstanding indebtedness. Russian Standard and its majority shareholder and Chairman, Mr. Roustam Tariko, have jointly filed a Schedule 13D with the U.S. Securities and Exchange Commission dated November 28, 2011 stating that they have beneficial ownership of 9.9% of the Company's currently outstanding shares.
The Company has engaged in preliminary discussions with representatives of Russian Standard as to a possible investment in the Company pursuant to the terms of a confidentiality agreement dated October 7 , 2011. No agreement was reached as to any matters referred to in the letter from Russian Standard, including with respect to valuation, governance or other matters, and no due diligence has been conducted with respect to the assets proposed to be contributed to CEDC in exchange for the suggested equity interest. The Board, in consultation with its external legal and financial advisors, intends to evaluate the proposal consistent with its fiduciary duties to act in the best interest of the Company's stockholders.
CEDC is one of the largest producers of vodka in the world and Central and Eastern Europe 's largest integrated spirit beverage business. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC currently exports its products to many markets around the world, including the United States , England , France and Japan .
CEDC also is a leading importer of alcoholic beverages in Poland , Russia and Hungary . In Poland , CEDC imports many of the world's leading brands, including brands such as Carlo Rossi Wines , Concha y Toro wines, Metaxa Liqueur, Remy Martin Cognac, Sutter Home wines, Grant's Whisky, Jagermeister, E&J Gallo, Jim Beam Bourbon, Sierra Tequila, Teacher's Whisky, Campari, Cinzano and Old Smuggler. CEDC is also a leading importer of premium spirits and wines in Russia with such brands as Concha y Toro, among others.