Carlsberg A/S, Russia’s biggest brewer, rose to the highest in two weeks in Copenhagen trading as Vladimir Putin’s election victory increased the prospect of stability and consumption growth in the eastern European nation.
Carlsberg climbed as much as 1.7 percent to 458.5 kroner, the highest price since Feb. 21. The stock was biggest gainer in the Copenhagen benchmark index of 20 companies, repeating yesterday’s market-leading advance.
“Putin’s victory is giving Carlsberg a lift,” Rune M. Dahl, a London-based analyst with DnB Markets, said by phone today. “Russian assets have been undervalued lately, and with the exposure Carlsberg has to Russia, it’s good news for the company that there’ll be a stable government.”
Carlsberg, the world’s fourth-largest brewer, had a Russian market share of 37.4 percent in 2011 and generated 31 percent of revenue from eastern Europe. The beermaker, which last month said it plans to buy the minority shares in its Russian Baltika unit, said today it plans to delist the division regardless of making an offer, a move that won’t need a shareholder meeting.
“Carlsberg may be taking a bit of a tough approach on Baltika minority owners, but that’s how it’s done,” said Dahl, who has a “buy” recommendation on the Danish company’s shares. “The additional pressure on minority owners increases the chances of Carlsberg gaining complete control. And Carlsberg will definitely benefit from full control because it gives operational flexibility in eastern Europe.”
Carlsberg was up 1.3 percent at 456.50 kroner at 10:09 a.m.