:. Food Industry News

Categories: Mergers and Acquisitions

Russia's Lenta Stake Sale Seen by End-October

Source: Reuters
23/09/2008

Moscow, Sept 23 - A deal to sell control in Russian retail chain Lenta is expected to come before the end of October, a banking source and a source close to the chain's shareholders both said on Tuesday.

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The St Petersburg-based chain of hypermarkets is holding a tender for the sale of an 89 percent stake, or the shares of all shareholders except for the European Bank for Reconstruction and Development (EBRD), which owns 11.1 percent.

Bidders reportedly include global retail giants Wal-Mart and Carrefour, along with Finnish retailer Kesko and Croatian food group Agrokor.

"All the companies have valued Lenta at just under $2 billion, but all of them (want) different conditions of the deal," the banking source told Reuters.

"Two strategists are interested in buying Lenta entirely, including EBRD shares. All conditions are being weighed up, the final choice will be made in favour of the most advantageous (offer). I think it will take about a month," he added.

Another source, who is close to Lenta's shareholders, said the financial crisis had not affected the plans of either the sellers or the potential buyers, and that the deal was expected to complete by the end of October.

A source close to Carrefour confirmed the French hypermarket chain remained interested in buying Lenta.

The privately owned Lenta includes 31 hypermarkets, with 14 in St Petersburg, and the rest in other major Russian cities.

The company's revenues were $1.56 billion in 2007. Its main shareholders are U.S.-born August Meyer, who owns 36.4 percent, Oleg Zherebtsov, who owns 35 percent, and EBRD.



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