M.Video to buy retail chain Eldorado from Safmar for 45.5 bln rbl - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

M.Video to buy retail chain Eldorado from Safmar for 45.5 bln rbl

MOSCOW, Mar 22 (PRIME) -- RussiaТs home appliances retailer M.Video will buy retail chain Eldorado from their parent company Safmar for 45.5 billion rubles excluding EldoradoТs liabilities, M.Video said in a statement on Thursday.

M.Video will take out a 40 billion ruble loan and use its own funds to finance the purchase. The merged companyТs loan portfolio will rise to 47 billion rubles.

M.Video plans to maintain both brands after the merger and to raise their combined revenue to 450 billion rubles by 2022. The synergy effect of the merger is anticipated at up to 18 billion rubles in EBITDA terms in 2018Ц2020 and the aggregate EBITDA and net profit figures may double within five years.

The merged companyТs net debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is expected to amount to 1.5x by the end of 2018.

The management team headed by M.Video founder and President Alexander Tynkovan and CEO Enrique Fernandez will manage the merged company.

The decision is yet to be approved by shareholders at an extraordinary general meeting.

Safmar bought a 57.7% stake in M.Video in 2017 and acquired Eldorado in 2016.

(57.4954 rubles Ц U.S. $1)

End

22.03.2018 16:07
 
 
Share |
To report an error select text and press Ctrl+Enter
 
 
Central Bank Official Rate
1W 1M 1Y
USD
EUR 74.9022 -0.6336 17 nov
USD 65.9931 -0.6228 17 nov
Stock Market Indices
1D 1W 1M 1Y
MICEX
rtsi 1134.93 +0.34 18:50 16 nov
micex 2372.67 -0.37 18:50 16 nov
Stock Quotes in RUR
1D 1W 1M 1Y
GAZP
gazp 153.16 -0.64 18:49 16 nov
lkoh 4824.00 -0.62 18:49 16 nov
rosn 420.85 -0.80 18:49 16 nov
sber 199.26 -0.44 18:49 16 nov
MICEX Ruble Trading
1D 1W 1M 1Y
USDTD
EURTD 74.9025 -0.2975 14:59 16 nov
USDTD 65.7225 -0.8775 17:44 16 nov