Softline to split Russian and international businesses

MOSCOW. July 19 (Interfax) - Softline intends to separate its business into two independent companies by demerging its Russian and non-Russian operations, the information technology company said in a press release.

The business in Russia will become Softline Russia and the business outside of the country will become Softline Global, although in future these names will change, the company said. Softline Global intends to retain the company's LSE listing.

The demerger is subject to a number of approvals, including shareholder approval, the company said.

Following the demerger, the board and executive team of Softline Russia will consider how best to provide Softline Russia shareholders with liquidity in their shares.

The company has already begun the demerger process and appointed a number of outside consultants.

In conjunction with the demerger, there will be some leadership changes that will take effect from August 1, 2022. Current Chief Operating Officer, Sergey Chernovolenko, will become Chief Executive Officer of Softline Holdings Plc and will lead the demerger transition. He will replace current Softline Holdings CEO Roy Harding, who will continue to serve on the board of directors as an executive director, as well as in an operational role responsible for the integration of strategic acquisitions within Softline Global.

Once the separation is completed, Chernovolenko will become CEO of Softline Global and join its board of directors. Current Softline International CEO Herve Tessler will take up the new position of president of the newly formed Softline Global. Current Softline International CFO Burak Ozer will become the CFO of the newly formed Softline Global, which will be headquartered in the UK.

The current CEO in Russia, Vladimir Lavrov will become the CEO of the newly formed Softline Russia. Current Softline Holdings CFO Artem Tarakanov will become the CFO of Softline Russia.

Softline is a leader in the Russian market, and the demerger will enable the company to continue expanding its market leading position, the company said. Softline Russia's headquarters will be in Moscow.