On Friday, Danish brewer Carlsberg (CARLb.CO) announced it had struck a deal to sell its Russian company but did not name the buyer or the price. Moscow must approve the sale.
Last year, Carlsberg, the Western brewer most exposed to Russia, said it projected a writedown of 9.9 billion Danish crowns ($1.45 billion) from a sale due to the invasion of Ukraine.
Carlsberg stated that the sales arrangement would not affect 2023 earnings.
“The signing of an agreement to sell the Russian business is a very important milestone in the highly complex separation and selling process,” Carlsberg CEO Cees ‘t Hart stated.
“While it has been an extensive process, it was important for us to reach the best possible solution for all stakeholders, including our more than 8,000 employees in Russia,” he added.
Carlsberg announced in March that it expected to sell the Russian business by June and was seeking an option to buy it back.
The Russian authorities still approve Carlsberg’s sale. Therefore, a spokeswoman wouldn’t reveal the buyer.
“It is uncertain whether they will get an approval at all, and if they do, it is hard to know when because the Russian authorities are difficult to predict,” Sydbank analyst Mikkel Emil Jensen told Reuters.
Jensen said Carlsberg would reveal the sales price if they updated their guidance. Therefore, they will wait until Russian authorities approve any guidance modifications.
“They need a full approval, before they potentially change their guidance,” he said, adding that he doesn’t anticipate Carlsberg to profit from the sale.
In 2021, Russia accounted for 10% of the brewer’s revenue.
New laws have made exiting Russia harder for Western corporations. Carlsberg rose 1.1% at 1152 GMT, surpassing Copenhagen’s benchmark index’s 0.4% decrease.
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