Baltic States – CIS, Employment, Estonia, Foodstuff, Legislation, Markets and Companies

Premia and Andrey Beskhmelnitskiy, food industry businessman with global reach and owner of Food Union Group, signed a contract for selling Premia's Baltics and Russian ice-cream and cold products business; the price of the transaction is EUR 27.1 million.

Kõvask said the transaction will help to further develop the Premia brand and, in particular, to improve technical opportunities. "Our people can continue the ice-cream culture that has been developed here for more than 50 years," said Kõvask at a press conference on Monday.

"We are very cheerful and happy as the management team that such a great development possibility has been guaranteed to us," she said.

Chairman of the Premia Foods council Indrek Kasela stated that this is the best solution for the company when you look at the fate of Premia Foods at the Baltic states common food market.

"Premia as a company with one of the best reputations and quality will preserve its face and standards," Kaseala said, adding that it is excellent news for customers, shareholders and employees. "All three parties are satisfied."

Kasela confirmed that it was not their purpose to sell the entire company at a time. He also assured that production continues in Tallinn, and there will be no layoffs.

Both Kõvask and Kasela stressed that the taste of Premia Foods products will remain unchanged. "The right flavours have to be found for each market that people there like and we will certainly not give up that principle. It has ensured us success so far," explained Kõvask. "In addition, the aim is to bring to market new and modern products in the Baltics, but these recipes that have been developed over decades in Tallinn will not disappear anywhere."

"This is a perfect deal," said Kasela at the press conference.

Premia informed the Tallinn Stock Exchange that on 06.10.2014, AS Premia Foods, Nordic Foods Holding OÜ and Shiner Macost Ltd executed share purchase agreements under which AS Premia Foods will sell and transfer 100% of all the shares in AB Premia KPC, 100% of all the shares in OOO Khladokombinat No 1 and the Russian trademarks owned by AS Premia Foods to Nordic Foods Holding OÜ and Shiner Macost Ltd for 27 million euros. Nordic Foods Holding OÜ is the special purpose vehicle owned by Shiner Macost Ltd. The ultimate beneficial owner of Shiner Macost Ltd is Andrey Beskhmelnitskiy who is a food industry entrepreneur with global scope originally from Ukraine.