- EBRD selling stake in Russian retailer Lenta
- 7.47 per cent stake will be acquired by Severgroup LLC
- Deal marks end of 16-year cooperation
The EBRD has agreed to sell its stake in Lenta, one of the largest retail chains in Russia. Following a 12-year period as a shareholder, the Bank is selling its stake of 7.47 per cent to the private investment company Severgroup LLC.
The transaction is subject to approval by the Russian Federal Antimonopoly Service.
George Orlov, EBRD Acting Head of Russia, said: “We are satisfied with the results of our 16-year cooperation with Lenta during which the Bank was a shareholder for most of the time. The EBRD contributed to the development of Lenta through debt and equity transactions and helped it emerge as a leading retailer in Russia.”
The EBRD has been working with Lenta since 2003, initially as a lender, and from mid-2007 as a shareholder.
During this time, Lenta established modern corporate governance and improved management practices, significantly increased the size of its operations by implementing an ambitious roll-out of new store and distribution centres across Russia, improved its energy efficiency and resource management and also achieved successful listings on the London and Moscow Stock Exchanges.
Lenta was founded in 1993 in St. Petersburg and is now the largest hypermarket chain in Russia and the country’s third largest retail chain.
It operates 245 hypermarkets in 88 cities across Russia and 135 supermarkets in Moscow, St Petersburg, Central Russia, Siberia and the Urals.
Lenta also operates seven distribution centres and employs a total of almost 46,000 people.