SSL looks to Russia as stake raised in group

SSL, whose products also include Scholl foot treatments, said yesterday it increased its stake in CIS-focussed condom packager and distributor BLBV to 75 per cent from 50.6 per cent in an agreement with BLBV's minority shareholder Abraca.

In November, SSL said Russia was set to become its biggest single

market and that it was likely in the first half of 2010 to buy the rest of fast-growing BLBV – SSL expects it to double its dollar reported revenues in the two years to 2009.

The FTSE 250 company said it will pay a consideration of no more than 140m, funded from cash and existing facilities, to take its stake to 75 per cent.

SSL paid a total of 90m for its 50.6 per cent stake, acquired in two stages in 2008 and 2009.

It said that the terms of the agreement to take over the remaining 25 per cent stake, an option exercisable in 2011, were similar to the deal announced yesterday.

SSL's chief executive Garry Watts said in a statement he expected the transaction, which is subject to shareholder approval, will be earnings enhancing in the first year.

"We are very optimistic for BLBV's prospects and the potential for SSL's products within the CIS and Eastern Europe," Mr Watts added.