CONSUMER STAPLES: Carlsberg exits Russian subsidiary (Baltika breweries)
(CARLB; Baa1, NR, BBB+ CW Neg)
Carlsberg has confirmed an exit from Russia for undisclosed amount in cash + (carlsberg) shares. Reuters was running a headline earlier it was for $320m (based on Russian government documents it had seen) - and if so is helpful amount. Reminder co has been on a acquisition binge totalling €5.7b (€5.2b bridge facility taken out, we see ~€2.2b cash short-fall/pending supply).
It ends a messy period which saw the Russian government seizing control, Carlsberg terminating licensing agreements in response and facing lawsuits in return. It's not along in facing issues there; French Danone took a €1.2b impairment charge and eventual exit, while low-levered Japan Tobacco has recently been put on negative outlook from S&P on concerns of pulling cash out of the country (~20% of profits). Most of the major tobacco's exited the country post-Ukraine (generally seen as a top-5 tobacco market) but PM and JPATOB have remained holding 33% and 38% of the market respectively. We may have yet to seen the full net financial impact of that - PM has in the past disclosed Russia in high-single digit as % of group profits.
https://www.carlsberggroup.com/newsroom/carlsberg-group-divests-shares-in-baltika-breweries/