Roustam Tariko takes control of CEDC

3rd January, 2013 by Becky Paskin

Roustam Tariko, owner of Russian Standard, will take control of vodka producer Central European Distribution Corp’s (CEDC) operations in exchange for up to US$65m in funding.

Roustam Tariko

Roustam Tariko has assumed financial control of vodka producer CEDC

Tariko became chairman and interim president of CEDC last year after agreeing to take a 28% stake in the company through his companies Russian Standard and Roust Trading.

However in a letter to shareholders dated 13 November he claimed CEDC lacked the “trustworthy management” needed to reinvigorate declining sales, and had breached the terms of their agreement. He claimed that as such, Russian Standard was no longer obliged to continue the alliance.

CEDC initially rejected Tariko’s request to be given control of the company’s financial management in a second letter to shareholders on 16 November, in which Scott Fine, vice president of CEDC’s special committee, called Tariko’s intentions “destructive and destabilising” and “contrary to the interests of CEDC, its shareholders and the CEDC/ Russian Standard partnership.”

Under the new agreement, announced on 28 December, Tariko will head a new operational management committee to oversee the day-to-day business of CEDC. Joining him on the board will be Fine plus an additional nominee of Roust Trading.

He will also head a new restructuring committee responsible for the company’s financial operations, which will also consist of three non-Russian Standard directors.

In addition, interim chief executive officer David Bailey is to resign from his position on 10 January, and be permanently replaced by Grant Winterton, currently general manager of CEDC subsidiary, the Russian Alcohol Group.

In return, Tariko will release restrictions on US$50m of cash previously invested in CEDC, and commit to an additional US$15m revolving credit facility.

CEDC reported a net sales loss of 8.7% to US$191m during the third quarter of 2012.

Leave a Reply

If that's interesting, how about these?

Campari sharpens spirits focus with wine sale

Gruppo Campari is to raise €62 million (about US$65.8m) from a wine sell-off more...

Seedlip: Alcohol-free spirits won't 'steal share' from booze brands

With alcohol consumption falling as drinkers grow more health-conscious, The more...

Supreme Court rejects retailer law bid

A group of Texan retailers has learned that its bid to get alcohol sales permit more...

Distilled Spirits Council slams Oregon tax

The Distilled Spirits Council has branded a proposed spirits levy in Oregon a more...

Global Spirits to grow US with MS Walker

Privately-held US drinks firm Global Spirits has appointed MS Walker as its New more...

Dewar’s brings 12 aged Scotches to Schiphol

Bacardi Global Travel Retail is running its John Dewar & Sons Fine Whisky more...

Rémy and Bols complete Passoã joint venture

Rémy Cointreau Group and Lucas Bols have formally established the Passoã more...

Ketel One campaign focuses on family

Ketel One vodka has unveiled new virtual reality campaign, ‘You Don’t more...

Havana Club twist as Trump hints at Cuba freeze

The Havana Club trademark battle between Pernod Ricard and Bacardi Limited more...

Mallya gifts US$40m severance to his children

Vijay Mallya has reportedly gifted US$40 million received in a severance deal more...

Grey Goose shines at Suvarnabhumi Airport

Bacardi Global Travel Retail (GTR) has brought the spirit of Christmas to more...

Angostura defends rum age statements

The acting CEO of Angostura Holdings has fiercely defended the “integrity” more...

Bombay Sapphire kicks off winter activity

Bombay Sapphire has collaborated with artists and designers to recreate more...

Knob Creek gets GTR gift focus

Beam Suntory Global Travel Retail (GTR) has released a travel retail gift box more...

Ex-Diageo director leads Sazerac DC office

Buffalo Trace Bourbon owner Sazerac has appointed a former Diageo director as more...

Rémy ‘breaks category boundaries’ at Schiphol

Rémy Cointreau Global Travel Retail has partnered with Amsterdam Schiphol more...

Arbikie launches strawberry vodka

Arbikie Highland Estate, producer of Scotland’s “first” potato vodka, has more...

Bartenders' top 10 Repeal Day cocktails

Celebrate the abolishment of the 18th Amendment in style this Repeal Day by more...

Cuba bans alcohol during Castro mourning

The Cuban government has banned the sale of alcohol as it continues a period of more...

Bacardi names new communications head

Bacardi has appointed KC Kavanagh as its new senior vice president and global more...