AFK Sistema files proposal to consolidate 100% of clothing retailer Melon Fashion Group
MOSCOW. Oct 20 (Interfax) - Sistema PJSC stands ready to consolidate 100% of JSC Melon Fashion Group, a Russian clothing manufacturer and retailer and owner of the Zarina, befree, Love Republic and Sela brands, the corporation's press service told Interfax.
The day before, AFK had agreed to purchase a 47.7% stake in Melon Fashion Group from Eastnine and East Capital Holding AB, both of which are based in Sweden, and a group of private investors for 15.8 billion rubles.
Now the corporation has made an offer to buy out shares from the rest of the shareholders at the price of the earlier announced deal. The offer is valid until November 3.
"A letter with a request to notify all shareholders of the company of this opportunity has been sent by us to the Board of Directors of Melon Fashion Group JSC. Overall, Sistema is ready to acquire up to 100% of Melon Fashion Group's charter capital," Sistema said. Those interested in this proposal may contact the IR-service of the company.
At the same time, the corporation noted that several Russian and Swedish shareholders have already expressed a desire to take advantage of the proposal.
The closing of the deal on Sistema's purchase of a 47.7% stake in Melon Fashion Group is expected to take place before the end of the year, after obtaining the required regulatory approvals and "fulfillment of other preconditions."
As a result of the deal, 40% of Melon Fashion Group will be retained by its founder and CEO David Kellermann and another 6% by its General Director Mikhail Urzhumtsev. The rest of the shares will be distributed among private minority investors.
Melon Fashion Group was founded in 2005, and the group runs 845 stores in 181 cities in Russia and in other member states of the Commonwealth of Independent States (Kazakhstan, Armenia and Belarus).
In 2021, Melon Fashion Group revenue reached 37.5 billion rubles, soaring 49% year-on-year, while EBITDA was up 38% to 8.6 billion rubles, and its net profit amounted to 3.5 billion rubles.