Detsky Mir estimates cost of buying out shares from those dissenting to reorganization from PJSC to LLC to be 25-35 bln rubles

MOSCOW. April 24 (Interfax) - PJSC Detsky Mir has estimated payments to shareholders who dissent to receive stakes in DM LLC as part of reorganizing the children's goods retailer from a public company into a private entity to be from 25 billion to 35 billion rubles, according to the company's financial statements.

Detsky Mir explains the estimate range as resulting from not being able to determine currently the exact number of shareholders who will dissent to enter the capital of the private entity. The financial statement was signed on March 29.

The buyback price per share has not yet been set, though it is planned to be at least 71.5 rubles per share. The voluntary offer for the sale of shares is envisaged to be held from May-June to August this year, and the mandatory offer from August-September.

Detsky Mir's shareholders at the end of last year approved the company's reorganization as a spin-off from its DM LLC. According to the statement, Detsky Mir has bought out 3,211,864 shares at 71.5 rubles per share from shareholders who have dissented to the reorganization or who did not participate in the meeting on the matter. Consequently, the company has allocated 229.65 million rubles for the buyout.

PJSC Detsky Mir boosted net profit 32.6% to 9.92 billion rubles to Russian Accounting Standards (RAS) in 2022, according to the company's financial statement. Revenue rose 5% to 178 billion rubles for the reporting period.

Gross profit grew 21.3% to 61 billion rubles.

PJSC Detsky Mir operated 1,086 stores as on December 31, 2022, including Detsky Mir, Zoozavr, and Detmir Mini.

Detsky Mir is Russia's largest specialized retailer in the children's goods market. The main beneficiaries are currently Pavel Grachev, former CEO of PJSC Polyus , and Mikhail Stiskin, Polyus's former senior vice president for finance and strategy, whose entity owns 19.99% of the shares. The free float prior to the share buyback from dissenting shareholders was around 60%.