Two divisions of Donskoy Tabak to be launched as new companies

2010-08-02

Donskoy Tabak, one of Russian leading tobacco companies, will shed two separate legal entities from its corporate structure: Krasnoarmeyskaya and Nancena. The decision was made at the company's shareholder meeting on 12 July 2010 and forms part of the company’s restructuring plans.
The two entities will be launched as new companies and will be created from stakes in Donskoy Tabak. In addition, some assets currently belonging to Donskoy Tabak will be transferred to the new entities. The assets in question include a building on Krasnoarmeyskaya Street that used to serve as a tobacco factory on a warehouse complex on Nancena Street in Rostov.
According to unofficial market opinions, the creation of the new entities is connected with Donskoy Tabak's plans to develop its tobacco processing division.
Donskoy Tabak is part of the Agrokom group, which is involved in various businesses operating in Russian grocery industry. In 2009, sales generated by Donskoy Tabak amounted to RUB 6.2bn ($0.2bn), 44% more than in the previous year. The company sold 21.1 billion cigarettes during the same period, up 5.3% year on year. The company’s net profit was RUB 342m ($10.9m), down from RUB 420m ($13.4m) in 2008