Lenta International PJSC Lenta completes acquisition of Utkonos business (3221A)
February 01 2022 - 6:29AM
UK Regulatory
TIDMLNTR TIDMLNTA
RNS Number : 3221A
Lenta International PJSC
01 February 2022
Press Release | St. Petersburg | 0 1 February 2022
LENTA COMPLETES ACQUISITION OF UTKONOS BUSINESS
St. Petersburg, Russia, 01 February 2022: Lenta IPJSC (LSE:
LNTA, MOEX: LNTA & LENT), one of the largest multi-format
retail chains in Russia, today announces that it has completed(1)
the acquisition of the Utkonos business. The purchase price at
closing amounted to RUB 20 billion.
The acquisition of Utkonos will enable Lenta to significantly
expand its online market share and strengthen Lenta's ability to
compete in the Moscow online market, especially within the
upper-middle and premium segments. As a result of the acquisition,
Lenta will have a total online market share of approximately 11% in
Moscow.
The integration of Utkonos is expected to proceed gradually,
with an emphasis on the improvement of operating economics and the
Company's long-term value. Lenta's Executive team is currently
developing the timeline with a gradual merger of Lenta Online and
Utkonos into a unified business with two brands, each covering its
own customer segment and shopping missions.
This acquisition supports Lenta's strategic goals and creates
synergies for the business going forward.
As previously announced, the transaction will be financed via
the placement of an additional issue of ordinary shares through a
closed subscription to Severgroup LLC (the "Subscription"). As of
the record date for the EGM (19 January 2022), other shareholders
may use their preemptive right to acquire additionally issued
shares if they did not participate in the voting or voted against
the Subscription. The EGM to approve the increase of the share
capital by way of the Subscription will be held on 11 February
2022, in the form of absentee voting.
Lenta is expected to make payment to Severgroup LLC following
its receipt of funds generated by the share placement.
V ladimir Sorokin, Chief Executive Officer, commented:
"Last year, we announced our long-term goal of becoming one of
the champions of the Russian retail market. We firmly believe that
online will be one of the engines for Lenta's growth. Utkonos is a
pioneer of the e-grocery segment in Russia and possesses unique
expertise in dark store operations as well as a loyal customer base
and the widest assortment amongst Russian offline and online food
retailers.
Together with Lenta Online and Utkonos teams, we are currently
developing a new strategy for the combined business, which will
focus on preserving and improving quality of service, attaining
synergies, and strengthening Lenta's position in the Russian
e-grocery market.
We are very pleased to welcome Utkonos employees to the Lenta
family."
(1) The actual transfer of title will occur from the moment the
corresponding entry is made into the Unified State Register of
Legal Entities.
For further information, please visit www.lentainvestor.com or
contact:
Lenta Lenta
Tatyana Vlasova Mariya Filippova
Head of Investor Relations Head of Public Relations and
tatyana.vlasova@lenta.com Government Affairs
maria.filippova@lenta.com
EM (International Media Inquiries)
Lenta@em-comms.com
About Lenta
Lenta IPJSC (LSE: LNTA, MOEX: LNTA, LENT) 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 December
31, 2021, operated 254 hypermarkets and 503 supermarkets and
convenience stores in 89 cities across Russia with more than 1.7
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 14
distribution centers to supply all of its stores. 2021 Revenues
were RUB 484 billion (approximately USD 6.5 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.
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END
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