0001193125-11-333728.txt : 20111207 0001193125-11-333728.hdr.sgml : 20111207 20111207165934 ACCESSION NUMBER: 0001193125-11-333728 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20111207 DATE AS OF CHANGE: 20111207 GROUP MEMBERS: ROUSTAM TARIKO SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL EUROPEAN DISTRIBUTION CORP CENTRAL INDEX KEY: 0001046880 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-BEER, WINE & DISTILLED ALCOHOLIC BEVERAGES [5180] IRS NUMBER: 541865271 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-56061 FILM NUMBER: 111249074 BUSINESS ADDRESS: STREET 1: 3000 ATRIUM WAY STREET 2: SUITE 265 CITY: MT LAUREL STATE: NJ ZIP: 08054 BUSINESS PHONE: 8562736970 MAIL ADDRESS: STREET 1: 3000 ATRIUM WAY STREET 2: SUITE 265 CITY: MT LAUREL STATE: NJ ZIP: 08054 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Russian Standard Corp CENTRAL INDEX KEY: 0001535667 IRS NUMBER: 000000000 STATE OF INCORPORATION: 1Z FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 12 KRASNOPRESNENSKAYA NAB STREET 2: OFFICE 1507 CITY: MOSCOW STATE: 1Z ZIP: 123610 BUSINESS PHONE: 7 495 9670990 MAIL ADDRESS: STREET 1: 12 KRASNOPRESNENSKAYA NAB STREET 2: OFFICE 1507 CITY: MOSCOW STATE: 1Z ZIP: 123610 SC 13D/A 1 d267039dsc13da.htm AMENDMENT NO.1 TO SCHEDULE 13D Amendment No.1 to Schedule 13D

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

 

 

 

Central European Distribution Corporation

(Name of Issuer)

 

 

 

Common Stock, par value $0.01 per share

(Title of Class of Securities)

 

153435102

(CUSIP Number)

 

Pavel Merkul

CJSC “Russian Standard” Corporation”

Chief of Staff

12 Krasnopresnenskaya Nab. Office 1507

Moscow, Russia 123610

7 (495) 967-0990

(Name, Address and Telephone Number of Persons Authorized to Receive Notices and Communications)

 

December 6, 2011

(Date of Event which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), (f) or (g), check the following box.  ¨

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

 

 

*   The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosure provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act.

 

 

 


CUSIP No. 153435102  

 

  1   

NAMES OF REPORTING PERSONS

 

CJSC “Russian Standard” Corporation”

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  ¨

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

    WC

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)    ¨

 

    

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

    Russian Federation

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

     7   

SOLE VOTING POWER

 

    

     8   

SHARED VOTING POWER

 

    7,206,125

     9   

SOLE DISPOSITIVE POWER

 

    

   10   

SHARED DISPOSITIVE POWER

 

    7,206,125

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

    7,206,125

12

 

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)    ¨

 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

    9.9*

14

 

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

    CO

 

* This calculation is based on 72,739,924 shares of common stock, par value $0.01 per share, outstanding as of November 4, 2011, as reported by the Issuer on its Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.


CUSIP No. 153435102  

 

  1   

NAMES OF REPORTING PERSONS

 

Roustam Tariko

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  ¨

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

    OO

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)    ¨

 

    

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

    Russian Federation

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

     7   

SOLE VOTING POWER

 

    0

     8   

SHARED VOTING POWER

 

    7,206,125

     9   

SOLE DISPOSITIVE POWER

 

    0

   10   

SHARED DISPOSITIVE POWER

 

    7,206,125

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

    7,206,125

12

 

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)    ¨

 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

    9.9*

14

 

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

    IN

 

* This calculation is based on 72,739,924 shares of common stock, par value $0.01 per share, outstanding as of November 4, 2011, as reported by the Issuer on its Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.


CUSIP No. 153435102

AMENDMENT NO. 1 TO SCHEDULE 13D

Reference is hereby made to the statement on Schedule 13D filed with the Securities and Exchange Commission (the “Commission”) on November 28, 2011. Terms defined in the Schedule 13D are used herein as so defined.

The following items of the Schedule 13D are hereby amended as follows:

 

Item 4. Purpose of Transaction.

The Reporting Persons hereby add the following disclosure to this Item 4:

On December 6, 2011, RSC sent a letter to the Issuer proposing a transaction between the Issuer and RSC. In this letter, RSC proposed (i) to assist the Issuer in restructuring its financial position, (ii) to extend a line of credit to the Issuer through Russian Standard Bank and (iii) the potential cooperation between the Issuer and Roust, Inc., a Russian spirits business, which is part of the Russian Standard family of companies controlled by Mr. Tariko, and integration of the gross margin of Roust into the Issuer. In exchange, RSC requests that the Issuer issue new shares to RSC and thereby increase the equity position of the Reporting Persons in the Issuer. The Reporting Persons believe that such a transaction would result in substantial benefits to the Issuer including increased cash flow, increased revenue, higher efficiency and cost savings.

In furtherance of this objective, the Reporting Persons may in the future engage in conversations with the Issuer and other stockholders with respect to this or other transactions and may make additional proposals that may include proposing, considering or undertaking one or more of the actions set forth in subsection (a) through (j) of Schedule 13D. The Reporting Persons may also seek to increase their ownership of the Issuer’s securities beyond that which they have on the date of this filing.

 

Item 7. Material to be Filed as Exhibits.

The Reporting Persons hereby add the following disclosure to this Item 7:

The following are filed as exhibits to this statement on Schedule 13D:

 

Exhibit

No.

  

Description

Exhibit 99.3    Letter from Russian Standard Corporation to Central European Distribution Corporation dated December 6, 2011


CUSIP No. 153435102

SIGNATURES

After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct.

Dated: December 7, 2011

 

RUSSIAN STANDARD CORPORATION
By:  

/s/ Nelia Nouriakhmetova

Name:   Nelia Nouriakhmetova
Title:   CEO
 

/s/ Roustam Tariko

Name:   Roustam Tariko
EX-99.3 2 d267039dex993.htm LETTER FROM RUSSIAN STANDARD CORPORATION Letter from Russian Standard Corporation

Exhibit 99.3

LOGO

STRICTLY PRIVATE AND CONFIDENTIAL

December 6, 2011

Central European Distribution Corporation

3000 Atrium Way, Suite 265

Mt. Laurel, New Jersey, 08054

United States of America

 

Attention:   Mr. William Carey
  Chairman of the Board
  Central European Distribution Corporation

Dear Bill,

Please find below our proposal for a strategic partnership between CEDC and Russian Standard. Given the current financial and operational situation of CEDC, we believe that a strategic partnership with a financially strong conglomerate such as ours is the right way to go. Please find below our suggestion on how to move forward.

Since the high debt level is currently the key structural issue for CEDC, we suggest an initial focus on resolving this problem. We are prepared to play the leading role in reducing and restructuring the heavy debt burden of CEDC, such that the company can once again play its leading market role without being pulled down by the debt.

We are prepared to work out a financial restructuring plan with CEDC’s leadership in order to secure CEDC’s business and operational needs. Our plan could include a credit line from Russian Standard Bank to CEDC to ensure successful implementation of CEDC’s financial plan for 2012-2013.

With respect to the equity participation of Russian Standard in CEDC, we are prepared to discuss the following suggestion from our side. Russian Standard is willing to integrate into CEDC the gross margin of Roust, which amounts to about US dollars 45 million per year with strong growth perspectives each year. This would of course imply a substantial financial strengthening of CEDC itself, and we are assuming that as a result of this activity the stock price of CEDC will climb up substantially, just as it did already in response to our recent announcement of being a shareholder.

LOGO


In return, CEDC would issue new shares, equivalent to 19.9% of the pre-dilution outstanding shares, to Russian Standard. Thus Russian Standard would become a substantial shareholder in CEDC. We would need to discuss the implications on governance, board seats, and other issues separately.

In addition, we would expect to receive an appropriate participation in the increased value of the company in the form of additional shares, provided that the market price of CEDC’s shares continues to climb above certain thresholds.

The integration of Roust would bring, in addition to a strong cash flow, substantial synergies to CEDC: building the strongest spirits and wine portfolio in Russia, increasing revenues through attraction of new customers and reduced discounts, higher efficiency of logistics and procurement, savings on back-office functions, strong relationships with the regulators.

We are confident that the market will react to our cooperation with a strong increase in the share price and thus the market capitalization of the company. This development would be of substantial value not only to the company itself but also to all current shareholders.

*    *    *

We are very excited about the possibility of creating this strategic partnership. Together we can do impressive things in the market, both in Eastern Europe and beyond.

I look forward to presenting this proposal to you and CEDC’s Board in more detail.

 

Yours sincerely

/s/ R.V. Tariko

R.V. Tariko

Chairman of the Board of Directors

Russian Standard Corporation

 

2

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