Nidda/Stada - comment

Moving the Russian business outside the Restricted group will allow for a cleaner sale/IPO process. The timing of the announcement points to imminent movement on ownership. The impact for creditors is marginal as the new holding company for the Russian assets will be a guarantor of the SSNs and SUNs. Nidda will provide additional proforma financial data reflecting the guarantee from a non-consolidated company. 

Management had always said the Russian business accounted for 15% of Revenue and a little more in terms of EBITDA. LTM Adjusted PF EBITDA (company calculated) was €1,033m and will fall to €824m (i.e. 20%) on deconsolidation of the Russian business. On a consolidated basis, leverage rises from 5.4x to 6.3x, but creditors will hold the g’tee from the Russian business for the difference.