Paris, July 6 - French wines and spirits group Belvedere said on Friday it planned to sell its Pulco and Sirop Sport businesses to Orangina Group for 178 million euros ($242.9 million) to reduce debt, and would distribute an exceptional dividend of 10 euros per share.
This transaction, which will be followed by the sale of assets in Poland and Florida, would generate a total 200 million euros in cash and cut net debt to between 210 million euros and 230 million euros before end 2007, or a net debt to equity ratio of under 1, the statement said.
Belvedere also said it would accelerate its expansion in coming years in the United States, France and Russia in order to lift earnings before interest, tax, depreciation and amortisation (EBITDA) to over 90 million euros by 2009 from an expected 70 million euros this year.
In addition, the group is launching a private placement, which will allow CL Financial, which owns 68.05 percent of the capital and 56.43 percent of the voting rights of Belvedere, to sell its stake in the company.
Under a deal sealed in June the Rouvroy and Trylinski families have until end-July to exercise a buy option on the stake.
The Rouvroy family owns 9.65 percent of Belvedere and the Trylinski family 12.48 percent.
Belvedere shares were suspended on Thursday ahead of the announcement.