Sistema, RCIF sell 6.3% of Detsky Mir at 90 rubles/share, raise 4.2 bln rubles
MOSCOW. Dec 12 (Interfax) - The placement price in the offering of Detsky Mir shares by conglomerate Sistema JSFC and the Russia-China Investment Fund (RCIF) was 90 rubles per share.
Sistema and the RCIF sold 46.5 million shares in the children's goods retailer, Sistema said in a statement. This amounts to 6.3% of equity in the retail, although initially it was expected that up to 8% would be sold.
The shareholders therefore earned about 4.2 billion rubles in the sale. Based on Detsky Mir's closing price on the Moscow Exchange on Monday, the shares were sold at a discount of almost 11% to the market.
Following the deal, Sistema's stake in Detsky Mir decreased to 47.1% and RCIF's dropped to 12.7%. The free float will increase to 40.2%. Before the placement Sistema held 52.1% and RCIF - 14.03%. Detsky Mir had already reached an agreement with lenders that there would be no requirement to prepay loans should AFK Sistema reduce its stake to below 50% plus one share.
AFK Sistema sold 36,633,502 shares in the placement, around 5%, receiving about 3.3 billion rubles with RCIF selling around 9.9 million shares, about 1.3% and receiving approximately 0.9 billion rubles.
RCIF attracted a number of leading international partners to the sale, including funds from China, Europe, the UK, the U.S. and the Middle East, the Russian Direct Investment Fund (RDIF) said.
Sistema will continue to consolidate Detsky Mir in its reports to International Financial Reporting Standards (IFRS), AFK said.
The deal will increase Detsky Mir's liquidity and free float coefficient which should promote further growth in the company's value, AFK Sistema President Mikhail Shamolin was cited as saying in a statement.
RDIF chief and RCIF co-director Kirill Dmitriev said that the latest placement attract no less interest from major foreign investors than the company's IPO at the beginning of the year. " We believe in the success of the Detsky Mir business model and want to continue to support the company's ongoing development by remaining one of its largest shareholders," Dmitriev was cited as saying in a RDIF statement.