Sberbank, Mail.ru to sign binding agreement on JV in Nov

MOSCOW, Oct 31 (PRIME) -- Russia’s Sberbank and Internet company Mail.ru Group plan to sign a legally binding agreement to set up a joint venture, focusing on food and transportation, in November upon receipt of approval from corporate bodies and the antimonopoly service, the country’s biggest bank said on Thursday in a quarterly report.

“In July, the (Sberbank) group and Mail.ru Group signed a letter of intent to set up a joint venture in order to create leading Russian online-to-offline (O2O) services platform focused on the key areas of food and transportation,” the bank said.

“The JV is to be set up based on (Mail.ru’s) Delivery Club and Citymobil companies. The partners will hold equal 50/50 stakes in the JV. (Sberbank) will contribute to the JV its share in Foodplex and approximately 38 billion rubles in cash. Further 13 billion rubles could be invested by (Sberbank) in the JV on the condition that key performance indicators are achieved over the 12-month period following the closing of the transaction.”

(63.8734 rubles – U.S. $1)

End