KPWiG requested to investigate Agros-Pernod agreement

Agros S.A. has transferred its US distribution rights for the -ubrowka and Wyborowa vodka brands to French Pernod Ricard, receiving no remuneration. Parkiet reports that the contract, revealed by one of Agros' shareholders, is evidence that Pernod Ricard, a major investor in Agros, is abusing its privileged position in the company and that the members of the board of directors who signed the agreement did not act in the company's best interests. The transfer of the distribution rights free of charge has a major impact on the company's value, as it might have made profit from the sale of the license. Moreover, it is suspected similar contracts have been signed in other countries, according to Gordon Singer from Highwood Partners which, together with Elliot Associates and Edgewater Investors, holds 14% in Agros."Due to the fact that Wybrowa is the fourth-largest selling vodka in the world, its distribution rights are valuable. The transfer of the rights to Pernod Ricard is another example of acting against the interest of smaller shareholders". Since, according to Singer, the contract was announced two months after it had been signed, Highwood will request the Securities and Stock Exchange Commission (KPWiG) it to determine whether or not information regulations had been broken. Agros objects to this, claiming minority investors' actions are aimed against its board of directors. (Parkiet, p.6)