SABMiller Romanian division on RASDAQ

Compania de Bere Romania (Romania Beer Company – CBR), the Romanian division of world’s largest brewer SABMiller and the second leading player on the domestic market is scheduled for floatation on RASDAQ, which will most likely happen this summer. Its RASDAQ experience might a short-lived one, though.
CBR, which holds several brands such as Ursus, Timisoreana, Pilsner Urquell or Holsten was established last year through the merger of the four breweries acquired by SABMiller in Romania: Bere Timisoreana, Ursus Cluj, Vulturul Buzau or Pitber Pitesti.
Since the four breweries had been privatised through the mass privatisation process, as well, the entity resulted from the merger registers several thousand minority shareholders, most of them individuals. The new capital market legislation binds the companies in this position to float.
“SAB holds 96.5% in CBR. The company has approximately 8,000 minority shareholders, to whom we are bound to provide the possibility to trade those shares. If everything goes as planned, the floatation could most likely take place in July,” Octavian Buzoianu, CBR corporate affairs director told Ziarul Financiar.
Prior to the listing, the nominal shares materialised and currently held by the CBR shareholders will have to be turned into dematerialised shares. All the shareholding and share capital-related operations are being handled by the Miorita Registry in Cluj.
Whereas the floatation of CBR, which accounts for 15% of the Romanian beer market (estimated to $550 million) is due to the new capital market legislation, the same legislation also provides for delisting.
SAB holds more than 90% in CBR and the securities law says the shareholders in this position have two options to choose from: either sell 17% in the company or put out a public takeover bid in view of delisting.
Since it is highly unlikely that SABMiller would need the Romanian capital market to finance it, putting out a public takeover bid could be therefore the option chosen.
“The law binds us to put out the offer until December 31, 2003 and we will probably do it,” Buzoianu said.
Another brewer listed on RASDAQ at the moment is Brau Union Romania, the beer market leader with 33%. It is close to delisting, though.
The Austrian Brau Union Group holds more than 90% in the company and will put out a public takeover bid in view of delisting this year.
SABMiller became world’s number one beer producer last year, after the international SAB group bought the American Miller brewer. SABMiller posted $3.9bn turnover and $374 million gross profit last year.