Moscow, March 24, 2015 –The Russian Direct Investment Fund (RDIF) acted as a lead anchor investor in the $225mn SPO of Lenta Ltd., one of the largest and most successful retail chains in Russia. In its role, RDIF was joined by its co-investors and partners from the Middle East, Asia and Europe alongside other investors to support growth and development of Lenta in Russia.
The RDIF participated in an accelerated book build placement of global depositary receipts representing newly issued shares in Lenta Ltd. The proceeds significantly strengthened the Company’s balance sheet and will facilitate its rapid store expansion program across Russia.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“This placement is notable because it represents strong interest of geographically diverse group of foreign institutions to invest in a leading Russian company despite the challenging market environment. RDIF is pleased to have helped Lenta in sourcing not only Asian and Middle Eastern investors, but a number of major European funds as well.”
Jan Dunning, Chief Executive Officer of Lenta, said:
“We are delighted to have received RDIF’s support and welcome RDIF as a key new investor following our successful equity placement. Demand for the issue was strong, driven by Lenta’s proven capability to deliver rapid new store expansion, its strong financial performance and its unique ability to adapt to the needs of consumers facing pressure on their household budgets.”
Russian Direct Investment Fund (RDIF) was established in 2011 to make equity co-investments, primarily in Russia alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF is based in Moscow. Further information at www.rdif.ru
Lenta is one of the largest retail chains in Russia and the country's second largest hypermarket chain (in terms of 2013 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 111 hypermarkets in 62 cities across Russia and 24 supermarkets in Moscow and the Moscow region, with a total of approximately 720,590 sq.m. of selling space. The average Lenta hypermarket store has selling space of approximately 6,300 sq.m. The Company operates four hypermarket distribution centres. The Company's price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 35,100 people as of 31 December 2014. Further information at www.lenta.com
Russian Direct Investment Fund
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