4 Aug 2010 13:04

Detsky Mir completes additional share placement for AFK Sistema

MOSCOW. Aug 4 (Interfax) - OJSC Detsky Mir-Center, which manages the Detsky Mir (Children's World) chain of children's-good stores, has placed additional shares on behalf of the chain's owner AFK Sistema and its subsidiary OJSC Detsky Mir-Retail Assets.

The Federal Financial Markets Service (FFMS), which registered the issue, reported the company had placed 637 additional shares with par value of 100 rubles. The placement price was 2,538,071 rubles per share, or 1.6 billion rubles overall.

The shares are to be paid for with cash, a 50% stake in OJSC Detsky Mir-Open, and rights to the Detsky Mir brandname.

The Detsky Mir chain consists of 129 supermarkets and hypermarkets with combined retail floor space of over 213,000 square meters. Detsky Mir-Center also manages Detsky Galereya Yakimanka (Yakimanka Children's Gallery) and the children's-goods distributor S-Toys.

The retailer made $21.1 million in net losses in Q1, though sales revenues were up 9.1% at $127.3 million.

Sistema no longer owns the historic Detsky Mir building on Lubyanka Square in downtown Moscow; it belongs to the developer Sistema-Hals , control over which VTB took last year.