OREANDA-NEWS. Pharmacy Chain 36.6 [ММВБ:RU14APTK1007], one of the leaders in beauty and health retail goods, is announcing that major shareholders of ОАО “Pharmacy Chain 36.6” (Bektemirov A.A., Krivosheev S.A. and Hi capital Fund, in total controlling more than 50% of the stock) have reached an agreement with the owners of Pharmacy Chain A.V.E. on merger of the retail business. Completion of the deal is subject to receipt of customary regulatory approvals and satisfaction or waiver of other conditions.

Integration is planned to be made using additional issue of shares of ОАО “Pharmacy Chain 36.6”, which will be the parent company of the future merged group. Additional issue will be made as public offering, part of which is planned to be paid by stock contribution of the operational companies of A.V.E. group and the remaining part will be offered for buy-out to current shareholders of ОАО “Pharmacy Chain 36.6” and other investors.

Share price for additional issue was defined by the Board of Directors of ОАО “Pharmacy Chain 36.6” as 22.4 rubles per share that corresponds to the weighted average trading price of the shares for the last six months. Final decision on additional issue and its parameters will be made at the special meeting of the shareholders of ОАО “Pharmacy Chain 36.6” which is scheduled for the 05th March 2014.

The parties came to an agreement that A.V.E. management will be responsible for operational control of the merged company.

Negotiation support from major shareholders of OJSC “Pharmacy Chain 36.6” carried MKB Capital and Group AVE represented by Alfa-Bank.

The Parties plan to develop both brand 36.6 as well as A.V.E. brand. Multiple brands if different formats cover all business segments of pharmacy retail from premium segment to the discounter and provide more possibilities for organic growth of the chain. Merged company may become the largest pharmacy chain in Russia on revenue and market share.

Artem Bektemirov, CEO and co-owner of ОАО “Pharmacy Chain 36.6”, commented the deal:

“Integration of Pharmacy Chain 36.6 with A.V.E. chain became possible due to sale of stake in Open Stock Company “VEROPHARM” for 5 billion rubles which significantly reduced the debt of the chain and made the negotiations on the merger viable.

Integration of the pharmacy retail companies is a logical stage of development of pharm. market, which is still not consolidated. Owners and management of A.V.E. Group possesses sufficient experience and the company itself has good dynamics of operational results. I am sure in the synergies of the merger of the chains, which both will benefit shareholders as well as consumers, and the merged company will hold the leading positions in the industry”.