by Eugene Vorotnikov FoodBizDaily.com Moscow
November 17 2009 - "Smart-Holding, a diversified Ukrainian Holding, is planning to buy the largest Ukrainian retail group Amstor, Ukrainian media reports.
"The acquisition will take place after its approval by the Ukrainian Antimonopoly Committee", - sources in the company has told. Both parties have already agreed the conditions of the transaction”.
Until now, "Smart Holding" has not had any assets in the retail trade however the company considers this segment as one of the most dynamic and attractive for investments.
According to the Ukrainian media, the owners of Amstor has been negotiating with many possible bidders for the chain including French Carrefour and Russian X5 Retail Group, - said a source close to one of the shareholders of Amstor.
Carrefour has already declined to comment.
The value of the transaction may exceed $400-500 million, with the current debt of the chain of more than $250 million However, according to analysts, Smart-Holding has a diversified business and will be able to restructure even such a big debt.
The transaction may allow "Smart Holding" to take a significant share of the Ukrainian retail market. Currently Amstor is the largest retail chain in Ukraine in terms of stores numbers.
It operates more than 20 hypermarkets in 12 cities, mostly in eastern Ukraine. According to "Smart-Holding, during the next five years the company plans to increase the number of stores up to 50 and will start the expansion of the largest Ukrainian cities, including Kiev, Odessa, Dnepropetrovsk and Lviv.
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Amstor Group
Address: 38, Sokolinaya Str Donetsk, 83012 Ukraine
Telephone: 380 62 345 5284
Fax: 380 62 345 5204
About Amstor Group
Amstor Group operates as a chain of supermarkets in Ukraine. The company provides bakery, culinary, confectionery, sausage, smoked fish, and meat products. It also offers vegetables and fruits, meat, fish, dairy products, drinks, canned products, sauces, and species. The company was founded in 2003 and is based in Donetsk, Ukraine. Amstor Group operates as a prior subsidiary of Midland Resources Holding, Ltd.