"Pernod Ricard" became owner of 100% of stocks of "Vin&Sprit"

Company "Pernod Ricard" and Kingdom of Sweden have signed the contract on takeover of 100% of stocks of "Vin&Sprit" group (V&S), which is the owner of famous brand Absolut vodka. This transaction does not include 10% of stocs that "V&S" owns in company "Beam Global Spirits & Wine".

"Pernod Ricard" will pay 1.45 billion EUR plus 6.05 billion USD, or 5.28 billion EUR, for "V&S". "Pernod Ricard" will also take over the net debt of 346m EUR, which means that the total value of the company is 5.626 billion EUR.

"V&S" will pay the dividend in amount of 85m EUR to the Government of Sweden before the transaction is finalized, whereas the purchase price of stocks will grow for the amount of appropriate annual interest rate of 2% between January 1, 2008, and the date of conclusion of the transaction.

In return, "Pernod Ricard" will use the advantages of the whole flow of cash that "V&S" generates in this period.