The investment company Kismet Capital Group of former MegaFon CEO Ivan Tavrin and GEM Invest Vladimir Paly intend to create a joint structure that will manage the Sela, Befree, Zarina and Love Republic networks, writes RBC.
According to the sources of the publication, the agreement will include all the brands managed by the Melon Fashion Group. The interlocutors of the publication do not name the amount of the transaction, but indicate that it does not foresee a repurchase option by foreign owners. According to RBC, government agencies have already approved the deal.
In early August, the FAS allowed Radio Reklama NN, owned by Kismet Capital Group, to buy the Befree, Sela, Zarina and Love Republic networks. It was reported that the company plans to acquire up to 75% in MFG Invest JSC.
The structure of the joint venture between Tavrina and Paliy and the terms of the purchase will be implemented as follows:
- First, Gem Invest will consolidate 89.9% of MFG JSC through the purchase of large blocks of shares and foreign and minority shareholders. Eastnine, East Capital and Kellerman are expected to close. 10.1% of MFG JSC will be distributed between the management of Melon Fashion Group and other minority shareholders.
- After that, Gem Invest and Kismet Capital Group will launch a joint venture based on the repurchased shares and will own it equally 50/50.
Earlier this month, Sweden’s Eastnine announced an agreement to sell a 36% stake in Melon Fashion Group for 15.6 billion rubles to GEM Invest. Prior to this, interest in the AFK Sistema asset, but soon dropped out of the potential deal.
Author:
Natalia Gormaleva
Source: RB
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