UPDATE: M.Video to buy 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

UPDATE: M.Video to buy Eldorado from Safmar for 45.5 bln rbl

(Adds details in paragraphs 2, 6Ц7)

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 from VTB Bank on the pledge of stakes in M.Video Management and Eldorado and trademarks, and also 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 on April 13.

The company will buy back shares from minority shareholders disapproving the deal at 401 rubles per share, which is close to the stockТs weighted average closing price on the Moscow Exchange over the past 12 months. The shares must be offered for a buyback during 45 days from the date of the meeting of shareholders, or until May 28.

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

(57.4954 rubles Ц U.S. $1)


22.03.2018 16:45
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