Mordashov is the main shareholder and chairman of Severstal, one of Russia’s biggest steel companies. His Severgroup will buy the stake from U.S.-based TPG Group and the European Bank for Reconstruction and Development (EBRD), for a total cash consideration of $729 million, it added in a statement.
The deal is subject to approval by Russia’s anti-monopoly regulator. After its completion, Severgroup will make an offer to all Lenta’s shareholders to acquire their stakes at the same price as its deal with TPG and EBRD: $18 per share, or $3.60 per global depository receipt (GDR). Lenta’s GDR closed at $3.38 on Monday.
“We see tremendous value in businesses that improve people’s quality of life and we believe there is great potential in retail as an industry which is now going through important transformation to meet the growing demands of consumers,” Mordashov said in a statement from Severgroup.
“Widely known as an efficient grocery retailer with one of the highest growth rates in the market, Lenta is a unique asset to unlock this potential in the Russian market,” he added.
The purchase is expected to be completed by the end of May.
Severgroup retained Citigroup Global Markets Ltd as its financial advisor in relation to the deal, it said in the statement, adding that it would hold a call for analysts and investors on Wednesday, April 3, at 1300 GMT.