Trouble brewing for Okocim issue
By : Greg Goodale
The Industrial Development Agency (ARP) has rejected the forthcoming Okocim share issue, saying it threatens the brewerys profits and the agencys influence as a shareholder.
ARP, a government agency that owns 7.4% of Okocim, threw out plans for a share issue aimed at funding the purchase of three Polish breweries at last weeks extraordinary general meeting of Okocim shareholders. But analysts said ARPs stake in Okocim is too small to influence its majority shareholder.
The plans involved putting the company into serious debt for future investment, said Romualda Sażyńska, spokeswoman for ARP. But the investment plans were not clearly presented, and there is a risk that they will not yield a return on capital in the near future. If we agreed to the new share issue we would seriously reduce our role in the company. She added that Polish company law gives ARP 30 days to apply for an annulment of Okocims decision, but that no decision had been made about taking the matter to court.
Grzegorz Lityński, beer sector analyst at Dom Maklerski WBK, said with its small shareholding, ARP has little chance to exert influence in a shareholder structure dominated by Dutch brewery Carlsberg. I would consider ARPs ... position as rather weak, Lityński said, adding that ARP is unlikely to take the matter further. Lodging an objection at an extraordinary general meeting costs nothing a court case does.
Okocims share issue is intended to fund the creation of the Carlsberg Okocim group. To Carlsberg acquired 81% of Piast from Dutch brewer Dyland in exchange for Carlsberg Okocim shares. Okocim bought Bosman and Kasztelan from German brewer Bitburger for zł. 220 million ($52.3 million), to be paid in cash and shares. The transaction will give Bitburger an 18% stake in Carlsberg Okocim while Carlsberg will have a 67% controlling interest, with the remaining 15% in the hands of minority shareholders.
