UniCredit Bank Austria Bought Shares In Russian Perfumery Giant

14.10.2009 — News

THE SVERDLOVSK OBLAST.

UniCredit Bank Austria AG has bought 10.72% of ordinary shares of OJSC Concern "KALINA" (Ekaterinburg). The details of the deal and the price of the stock have not been made public while experts estimate the deal to be worth 17.5 million dollars according to the company's capitalization of 163 million dollars.

The Russian office of the bank informed RusBusinessNews that UniCredit Bank Austria AG is a nominee shareholder. The bank has not revealed who the beneficiary is. Analysts point out two probable causes for this purchase. Kalina's shares are considered to be undervalued in the market, after a serious fall in 2008 their price has tripled this year and keeps on rising. It can not be ruled out that this may be done to get a credit facility against the shares.

According to the second quarter report the following were large security holders of Kalina: Renaissance Securities Limited (20.16% shares), UBS AG (15.26%), Citigroup Global Markets Limited (8.72%), HSBC Bank PLC (7.08%), Lindsell Enterprises Limited (7%), Deutsche Bank Trust Company Americas (6.21%), Gemof Russia portofolio Limited (5.07%).

The results of the first half of 2009 showed the revenues of OJSC Concern "KALINA" amounting to 4 billion 826 million 787 thousand roubles (13% up compared to the same period last year), net profit - 155 million 685 thousand roubles (27% down compared to the first half of 2008).

Concern "KALINA" is one of the largest manufacturers of perfumery, cosmetics, and household chemicals in Russia. In addition to the production site in Ekaterinburg the holding includes Kalina International SA (Switzerland), a subsidiary "Pallada Ukraine" (Ukraine), Kalina Overseas Holding B.V. (the Netherlands), "Glavskazka International" LLC, "Dr. Scheller Beauty Center" LLC. The regional retail network of the company in Russia and the CIS countries includes 213 dealer companies.