Transaction attracts strong investor interest, suggesting confidence in Lenta’s performance.
The EBRD has today reduced its stake in Lenta, one of the largest retail chains in Russia. The Bank sold 17,833,000 global depositary receipts, representing 25 per cent of its holding, through an accelerated private placement on the London Stock Exchange.
The transaction was launched on 23 June 2015 and attracted strong interest and demand from a broad mix of institutional investors internationally. Credit Suisse Securities (Europe) Limited and Morgan Stanley & Co. International acted as joint bookrunners of the offering. Following the sale, the EBRD will continue to hold an 11.5 per cent stake in Lenta.
Alain Pilloux, EBRD Managing Director for Industry, Commerce and Agribusiness, said: “The success of this sale signals the continued interest in Lenta from the international investor community and proves the tremendous achievements of the company to perform, even in trying market conditions. We continue to strongly support the company and sold only a portion of our holdings as part of the Bank’s normal portfolio management operations”.
Jan Dunning, CEO of Lenta, said: “We appreciate the support Lenta has received from the EBRD and look forward to continued cooperation in the future. This transaction illustrates the depth of support for Lenta among institutional investors and also takes the company’s free float to above 50 per cent, an important milestone in our journey”.
The EBRD has been working with Lenta since 2003, initially as a lender, and from mid-2007, as a shareholder. The Bank retains a representative on Lenta’s Board of Directors and remains committed to the company as well as to its other investments in Russia.
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