Lenta International PJSC Acquisition (1100Z)
May 19 2021 - 2:00AM
UK Regulatory
TIDMLNTR TIDMLNTA
RNS Number : 1100Z
Lenta International PJSC
19 May 2021
Press Release | St. Petersburg | 19 May 2021
Lenta to acquire Billa Russia to become #2 supermarket operator
in Moscow
St. Petersburg, Russia , 19 May 2021: Lenta LLC, an indirect
subsidiary of Lenta IPJSC (MOEX & LSE: LNTA), one of the
largest multi-format retail chains in Russia, today announces an
agreement to acquire the supermarkets business of Billa Russia GmbH
("Billa Russia") for EUR 215 million in cash.
The acquisition significantly accelerates Lenta's expansion in
Moscow, adding prime retail locations that represent mature retail
properties with a high sales density. As a result of the
transaction, Lenta will have a total food retail market share of
approximately 3% in Moscow and the Moscow region.
The acquisition is expected to make a meaningful contribution to
Lenta's revenue growth and performance.
Vladimir Sorokin, Chief Executive Officer, commented:
"The acquisition of Billa Russia's supermarkets gives us access
to mature stores with established customer traffic, including in
central Moscow neighborhoods, and instantly doubles Lenta's
footprint in the supermarket segment in terms of the number of
stores overall. Billa's locations also enable Lenta to further
expand its online express delivery offering across all of Moscow,
supporting our ambitious plans to significantly grow the online
business in the coming years.
Becoming the second biggest supermarket operator in Russia's
largest and wealthiest metropolitan area represents a significant
statement of intent backing up the ambitious strategic goals we
announced at our recent Capital Markets Day. In addition, this
acquisition demonstrates our commitment to continue playing an
active role in the development of the grocery retail sector.
We see a strong cultural fit between Billa Russia and Lenta and
are pleased to welcome over 5,400 new colleagues from Billa Russia
to the Lenta family. We are confident that this acquisition is a
strong win for Lenta customers, employees and shareholders
alike."
Lenta plans to integrate the 161 newly acquired supermarkets,
supply chain infrastructure and Billa Russia employees into the
Lenta retail network. Once the stores have been converted to the
Lenta brand, the Billa brand will be discontinued within
Russia.
Billa currently operates supermarkets with total selling space
of 138,051 square meters, the vast majority of them in Moscow and
the Moscow region, as well as a distribution center in Bykovo
(Moscow Region) .
The transaction is expected to close in Summer 2021, subject to
regulatory approvals from the Russian Federal Antimonopoly Service
(FAS).
For further information, please visit www.lentainvestor.com or
contact:
Lenta Lenta
Mariya Filippova Timothy Post
Head of Public Relations and Government Investor Relations Officer
Affairs timothy.post@lenta.com
maria.filippova@lenta.com
EM (International Media Inquiries)
Lenta@em-comms.com
About Lenta
Lenta IPJSC (LSE and MOEX: LNTA) is a leading Russian
multi-format food and FMCG retailer. The company operates
hypermarkets, supermarkets, and recently launched a new proximity
store format under the brand "Mini Lenta." It also provides
customers the option to shop online via its click-and-collect and
express delivery services. Lenta is Russia's largest hypermarket
operator and the fourth largest food retailer overall by Sales. The
company was founded in 1993 in St. Petersburg and as of March 31,
2021 operated 254 hypermarkets and 140 supermarkets in 89 cities
across European Russia with more than 1.5 million square meters of
Selling Space. The average Lenta hypermarket has approximately
5,500 square meters of selling space, the average Lenta supermarket
has 800 square meters, and the Mini Lenta format is 500 meters on
average. The company operates 13 distribution centers to supply all
of its stores. 2020 Revenues were RUB 445 billion (approximately
USD 6 billion).
Forward-Looking Statements
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements." These forward-looking
statements can be identified by the fact that they do not only
relate to historical or current events. Forward-looking statements
often use words such as "anticipate," "target," "expect,"
"estimate," "intend, " "expected," "plan," "goal," "believe," or
other words of similar meaning. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances, a number of which are beyond
Lenta's control. As a result, actual future results may differ
materially from the plans, goals, and expectations set out in these
forward-looking statements. Any forward-looking statements made by
or on behalf of Lenta speak only as of the date of this
announcement. Except as required by any applicable laws or
regulations, Lenta undertakes no obligation publicly to release the
results of any revisions to any forward-looking statements in this
document that may occur due to any change in its expectations or to
reflect events or circumstances after the date of this
document.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQUKASRASUVARR
(END) Dow Jones Newswires
May 19, 2021 02:00 ET (06:00 GMT)
Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2024 to Jul 2024
Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2023 to Jul 2024