IDS Ukraine, one of the largest producers of bottled water and beverages in Ukraine, calls on the Ministry of Justice, in the process of confiscating the corporate rights of the IDS Ukraine group of companies, to prohibit ARMA from taking actions to transfer part of the assets to the management company and to carry out nationalization under a scenario favorable to the state, so as not to lose UAH 1.2 billion.

The member of the board of directors, director of legal issues and economic security of the company Vadym Vychka at a press conference in Interfax-Ukraine recalled that in September the Ministry of Justice applied to the High Anti-Corruption Court (HACC) with a claim for confiscation of 100% of the corporate rights of the entire group in favor of the state.

According to the company's management, such a scenario is the least destructive way to seize assets under sanctions. However, IDS Ukraine expresses concern and points out the risks of its nationalization.

According to Vychka, the structure of IDS Ukraine includes seven companies: PrJSC Industrial and Distribution Systems (IDS), which is the management company, PrJSC Morshyn Plant of Mineral Waters Oskar (the brand Morshynska), PrJSC Myrhorod Mineral Water Plant (the brand Mirgorodska), IDS Aqua Service - a bottled water delivery operator, Potuzhnist LLC and IVA PE, which specialize in water extraction, NOVA.COM SE, located in the occupied territory. Such a structure was developed 20 years ago. They are interconnected and will not be able to exist independently if any of them is seized from the group's structure.

Currently, the market share of the group of companies is more than 40% of the packaged mineral and drinking water market in Ukraine. The Morshynska trademark accounts for 27% of the mineral water market. It is recognized as the most expensive brand in Ukraine.

The group's gross revenue in 2024 is estimated at UAH 6.8 billion, it has reached the pre-war 2021 level. The group is the largest taxpayer in the industry. During 2021-2023, its capital investments amounted to UAH 425 million. During the war, new products were introduced to the market, in particular, Energy drink Volya, Lemonada from Morshynska, etc.

According to Vichka, the media's accusations against IDS Ukraine that shareholders benefit from its activities are unfounded, since no payments have been made to shareholders since the beginning of the war. This made it possible to accumulate UAH 935 million in net profit, which the state can pay out in the form of dividends to the state budget.

The member of the board of directors of IDS Ukraine added that in 2024 the group would pay more than UAH 1 billion in taxes. Accordingly, the state budget will receive UAH 2 billion in total.

According to him, 50.01% of IDS Ukraine shares belong to unsanctioned shareholders. The remaining 49.99% belong to representatives of Alfa Group, to whom European, American and Ukrainian sanctions were applied at the beginning of 2022. Among the representatives of Alfa Group in the IDS Ukraine business, Russian businessman Mikhail Fridman owns 18.23% of the shares. However, due to the sanctions, sanctioned shareholders do not have any influence on the group's activities, Vichka assured.

IDS Ukraine lawyer Markiyan Bem recalled that in 2022, 100% of the corporate rights of all seven companies of the group were seized. In 2023, the Asset Recovery and Management Agency (ARMA) held a competition to select a manager for two IDS Ukraine companies - its management company IDS and the Morshyn Mineral Water Plant Oskar. The winner was a direct competitor of IDS Ukraine - Karpatski Mineralni Vody LLC (Carpathian Mineral Waters, the brand Karpatska Dzherelna). In 2024, the Antimonopoly Committee of Ukraine (AMCU) began studying the mineral water market and the possible consequences of concentration.

In turn, IDS Ukraine appealed to the relevant government agencies with a request to prevent the monopolization of the drinking water market and the destruction of the Morshynska brand, provided explanations in the media about the risks of appointing a direct competitor as a management company and called for the nationalization of the group instead of transferring it to private hands.

According to the lawyer, the group of companies sees two options for collecting the seized assets of IDS in favor of the state. In the first scenario, the AMCU will not give permission for the concentration of two mineral water producers. As a result, all the seized assets of IDS Ukraine will be seized by the HACC in a few months and become state property. The value of the seized assets and funds in the accounts under this scenario are fully preserved. Under the second scenario, the AMCU grants permission for concentration to Karpatski Mineralni Vody. They will, at their own discretion, manage the received assets of the two key companies of the IDS Ukraine group for two to six months.

After that, the property will also be seized by the HACC and become state property, but its value will significantly decrease due to the destruction of the integrity of the property complex and business ties between the structural divisions, as well as due to the unpredictable results of the management company.

IDS Ukraine expressed concern that if the second scenario is implemented, Karpatski Mineralni Vody, as a temporary manager, in order to achieve its business goals of redistributing the market in favor of its own brands, may reduce production at Oskar plant, which will lead to the displacement of the Morshynska brand from the market.