Russia. Baltika Breweries Holds Extraordinary General Shareholders’ Meeting

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The Extraordinary General Shareholders’ Meeting was conducted on 1 September 2011 by absentee ballot. Baltika’s shareholders approved the conversion of preference shares to ordinary shares.

99.46% of A-type preference shareholders and 83.23% of ordinary shareholders voted for the shares conversion. Therefore, all preference shares will be converted into ordinary shares. The process of conversion can take around 6 months.

Shares will be converted at a ratio of 1:1, namely: one A-type preference share will be exchanged for one ordinary share.

By merging the two share classes, Baltika aims to optimize a structure of the share capital which is complicated and requires definite administrative costs. The merger of the two share classes into one is also anticipated to have a positive impact on the trading liquidity of Baltika shares.

Historically preference shares have been used by companies during privatization. As Baltika is in a strong financial position and is an adequately capitalized company, the Board of Directors believes that the preference share class is an unnecessary structure.

Baltika has traded ordinary and preference shares on stock exchanges and the off-exchange market. In Russia, the company’s shares are traded on two trading platforms: the RTS Exchange (since 2001) and the MICEX Stock Exchange (since 2003). Currently, the company’s shares are listed in the ‘Listed Securities Not Included in Quotation Lists’ section of the catalogue.

The company’s issued share capital consists of 151,714,594 ordinary shares and 12,326,570 A-type preference shares. The nominal value of each ordinary and preference share is RUB 1. The company’s issued share capital totals RUB 164,041,164.