Softline completes process to separate business into Russian and international parts

MOSCOW. Oct 20 (Interfax) - IT solutions provider Softline has closed the deal to sell its Russian business to Igor Borovikov, the founder of the entire group, the company said in a statement.

Consequently, Russian Softline no longer depends on the global group.

There were previous reports that the Russian business would be sold to Borovikov for a symbolic price of $1. Borovikov's share in the global group reduces to 44% following the sale of the Russian business.

The international business group will be called Softline Global following the separation, rebranding the international company has not been ruled out, and the group plans to maintain its listing on the London Stock Exchange.

Softline plans to hold a shareholders' meeting on October 25 in order to consider the matter of a bonus issue for all holders of securities, except for Borovikov and the Russian spin-off entity. The matter will be considered because the value of Softline's securities could be diluted owing to the separation of the business.

Softline held an IPO at the end of October 2021, resulting in the company raising $400 million. Softline has representative offices in about 60 countries.