Oaktree exits listed Stock Spirits for £202.6m

Ellie Pullen
11 April 2014

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Oaktree Capital Management has sold its entire 36.8% stake in Stock Spirits, the CEE-focused spirits producer that listed on the London Stock Exchange in October.

The GP sold 73.6 million shares in a placing to institutional investors. The price was set at £2.75 per share, according to JP Morgan Securities, meaning gross proceeds from the sale totalled £202.6m.

The price represented an 11% discount on Stock Spirits' share price at market close on Monday.

Following the announcement of Oaktree's plans to fully exit the business, shares in Stock Spirits fell from £3 per share at market close on Monday to close on £2.77 on Tuesday. Stock price has been gradually creeping back up to close on £2.83 per share yesterday.

Oaktree had originally planned on selling approximately 68% of its shareholding in the company, representing a 25% stake and around 50 million shares.

Stock Spirits listed on the London Stock Exchange in October with a market cap of £470m. Shares in its IPO were sold at a price of £2.35 per share, meaning the company raised gross proceeds of £258.5m.

Oaktree and other selling shareholders raised £201m in the offering, with 55% of the company's share capital being offered in the flotation. Oaktree's stake was reduced to 36.8% at the time of the IPO.

Stock Spirits was created when Oaktree acquired the spirits subsidiary of Germany-based Eckes & Stock and merged it with existing portfolio company Polmos Lublin. Oaktree had acquired Polmos Lublin in a take-private deal, delisting it from the Warsaw Stock Exchange in January of the previous year for €24m, according to unquote" data.

Company
Founded in 2007, Stock Spirits is headquartered in Buckinghamshire. The group recorded turnover of €340.5m in 2013, as well as an EBITDA of €83.6m with a margin of 24.6%. Its market cap currently sits at £567.5m.

The company's main market is central and eastern Europe. Stock Spirits claims to hold the largest market share for spirits in Poland and the Czech Republic, and also claims to be the leading vodka company for both countries.

Brands under Stock Spirits' ownership include 1906 vodka, Božkov liqueurs, Hammer Head whisky and Key rum.

People
Chris Heath is the CEO of Stock Spirits. Following Oaktree's exit from the company, managing director Karim Khairallah has stepped down from his position on Stock Spirits' board of directors.