by Eugene Vorotnikov FoodBizDaily.com Moscow
November 09 2009 - The largest Russian retailer X5 Retail Group is considering acquiring its local competitor "Kopeyaka" retail group, Russian media reported.
According to sources close to Russian business daily newspapers, the company has already asked some leading Russian banks to provide funding for the transaction.
Last year the First Deputy Prime Minister Igor Shuvalov recommended Russian retail chains to "unite", asking some leading Russian banks, including VTB and Sberbank to give them money for acquisitions.
According to Russian media, currently the banks are still considering the possibility of lending funds for the transaction.
An unofficial source said close, said that in case of an agreement the owner of "Kopeyaka" Nikolai Tsvetkov will control a 20-25% stake in the new company.
According to Prosperity Capital Management, the total amount of the transaction may exceed $700 million. However X5 is not ready to spend such money hoping to pay no more than $300-350 millions.
Kopeyaka was founded in 1998 with 38 stores.The firm first gained prominence in when it was taken over by the ill-fated Yukos oil giant in 2002. On the firms demise a controlling stake was sold to NIKOIL. In 2006 50% was sold on to another local chain by which time there were 267 stores and 4 distribution centers.
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X5 Retail Group NV
Address: Prins Bernhardplein 200 JB Amsterdam, 1097 Netherlands
Telephone: +31-495-9505577
Fax: +31-495-9505577
About X5 Retail Group NV
X5 Retail Group N.V. acts as a holding company for the group of companies that operate retail grocery stores. The Company, together with its subsidiaries, is engaged in the development and operation of grocery retail stores. As at December 31, 2008, the Company operated a retail chain of softdiscount, supermarket and hypermarket stores under the brand names Pyaterochka, Perekrestok and Karusel, in Russia, including, but not limited to Moscow, St. Petersburg, Nizhniy Novgorod, Krasnodar, Kazan, Samara, Lipetsk, Chelyabinsk, Perm, Ekaterinburg and Kiev. As at December 31, 2008, the Company operated a total of 207 supermarkets, 848 discounter stores, and 46 hypermarkets. In addition as at December 31, 2008, its franchisees operated 607 stores across Russia. In March 2008, the Company acquired Kama-Retail Company. In June 2008, the Company acquired Formata Holding B.V.
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