Sistema to buy 47.7% in Melon Fashion Group for 15.8 bln rbl

MOSCOW, Oct 19 (PRIME) -- Russian multi-industry holding Sistema has signed binding agreements to buy a 47.7% stake in clothes producer and retailer Melon Fashion Group from Swedish companies Eastnine and East Capital Holding AB and from private investors for 15.8 billion rubles, the company said in a statement on Wednesday.

Sistema plans to finance the deal using its own and borrowed money, and to close it until the end of 2022 after it receives necessary regulatory approvals, the company said.

The company said quoting President Tagir Sitdekov that Melon Fashion Group shows great business growth and positive margin dynamics. The deal meets Sistema’s investment strategy, whose goal is to consolidate high-quality assets and to use opportunities during the market’s transformation, Sitdekov said as quoted by the company.

Melon Fashion Group is one of Russia’s largest clothes retailer that manages brands like Zarina, befree, Love Republic, and Sela and operates in 181 cities of Russia, Kazakhstan, Armenia, and Belarus.

(61.7032 rubles – U.S. $1)

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