X5 Retail Group Acquires Pyaterochka Franchisee in Rostov
OREANDA-NEWS. On 29 December 2008 was X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: “FIVE”), announced that it has signed an agreement to acquire 100% of the business and assets of OOO Agrotorg-Rostov - a Pyaterochka franchisee in the Rostov region - for a total consideration of RUR 400 mln (approximately US USD 15 mln), including refinancing of debt owed to B.I.N.BANK and trade accounts payable to suppliers and employees. In order to refinance the debt of OOO Agrotorg-Rostov X5 and B.I.N.BANK have signed a credit agreement in the amount of RUR 282 mln to be repaid in 1.5 years.
As a result of the transaction, X5’s will strengthen its geographic presence in the south of Russia, with a better balanced multi-format store portfolio. X5 Retail Group plans to operate 15 of the Pyaterochka soft discount stores acquired in the transaction (about 7 thousand. sq. m. of net selling space), 10 of them owned properties, and will consider potential sale of some real estate assets at a future date. Currently in addition to leased premises OOO Agrotorg-Rostov owns retail premises and an office building in Rostov and the region with the total area of 14 thousand. sq. m.
Комментарии