Roustam Tariko, Central European Distribution Corp's largest shareholder, has agreed to exchange debt he is owed and hand over rights to some vodka brands in exchange for a larger stake in the beverage company. The deal, which is to be executed in two phases, will increase the Russian billionaire's stake in the firm to 33 percent.

CEDC's stock price soared by almost 28 percent on Thursday as a result of Mr Tariko's proposal. CEDC shareholders had been worried that the firm lacked a clear plan to pay back $300 million debt maturing next year.

Mr Tariko will convert $103 million in CEDC debt maturing in 2013 into common shares which he would own. He has also offered to help the company in dealing with the rest of the debt, possibly through the extension of a credit facility.

CEDC is the owner of a number of alcohol brands, including Polish Żubrówka vodka.

Roustam Tariko is the founder of Russian Standard Vodka, a maker of premium vodkas.

Poland A.M.