9 Sep 2019 10:07

Sberbank plans to close deal with Mail.ru Group in Nov-Dec - CEO

MANZHEROK, Altai Republic. Sept 9 (Interfax) - Sberbank plans to sign binding documents on its deal with Mail.ru Group in November-December, the leading Russian lender's CEO, Herman Gref told reporters on Saturday.

"We should complete the deal before the end of the year. Not before November. I think we'll close the deal in November-December," Gref said.

Sberbank and Mail.ru Group have signed a letter of intent to form a joint venture based on food delivery service Delivery Club and taxi hailing service Citymobil.

The parties said earlier that they planned to sign the binding agreement in the fall of 2019, after receiving all necessary approvals from corporate governance bodies, competition authorities and other regulators.

The partners plan to create a joint online-to-offline (O2O) services platform focused on the areas of food and transportation. The services will be integrated into the ecosystems of Sberbank and Mail.ru Group.

The partners plan to invest up to 64 billion rubles in the joint venture on the condition that key performance indicators are achieved over the 12-month period following the closing of the transaction.

The JV will receive 45.5 billion rubles at the conclusion of the deal, and an additional investment of up to 18 billion rubles over the following 12-month period after closing if KPIs are achieved. If these KPIs are achieved, the post money valuation of the JV will exceed 100 billion rubles, Sberbank and Mail.ru Group said earlier.