Mordashov’s Severgroup receives 51.76% in Lenta retailer – company materials

TASS Russian News Agency | May 17, 2019 at 6:22 PM

MOSCOW, May 17. / TASS /. The share of Alexey Mordashov’s investment company Severgroup in retailer Lenta has reached 51.76%, the information was made public in company materials published on the London Stock Exchange on Friday.

On, May 16, it became known that the share of Severgroup in the retailer exceeded 50%. At the same time, the buyout offer was extended until June 4, 2019.

In March 2019, Lenta’s to-date largest shareholder PG Group made it public that it was in talks with Severgroup on the sale its 34.13% share of the retailer. Earlier, Vedomosti newspaper reported citing sources that a stake in the Lenta retailer may be sold to Alexey Mordashov.

In early April, Lenta said that it had received a non-binding proposal from Russia’s retailer Magnit to acquire 100% of shares for $1.78 bln. The proposal implies an equivalent value of $3.65 per Lenta GDR, which is higher than that of Severgroup - $3.6. Magnit then confirmed its interest in the transaction.

Severgroup entered into definitive agreements with Luna Inc. (an investment vehicle beneficially owned by TPG Group) and the European Bank for Reconstruction and Development (EBRD) for the purchase of around 41.9% of Lenta’s share capital for a total of roughly $729 mln. Completion of the transaction is subject to a number of conditions, including FAS approval. Upon completion of the purchase, Severgroup will make an offer to all Lenta’s shareholders/GDR-holders to acquire their shares/GDRs at a price of $3.6 per GDR ($18 per share).

Prior to the transaction, the largest shareholders of Lenta were TPG Group (34.13%) and the European Bank for Reconstruction and Development (7.4%). Lenta was founded in 1993 in St. Petersburg. The retailer manages 233 major stores in 84 cities across Russia and 116 supermarkets.