Detsky Mir announced the transition of the company to the private company

It was decided to launch the transformation of Detsky Mir into a private company in connection with the pressure of general sanctions on the Russian economy and the difficulties that certain restrictions entail.

In particular, foreign investment funds occupy a significant part in the authorized capital structure of the company. At the same time, as a result of changes in Russian legislation, they are deprived of the opportunity to trade at Moscow Stock Exchange auctions. In addition, some investors face difficulties in voting at general shareholders’ meetings.

The transition from the company to private enterprise is planned to take place in several stages. First, during the reorganization process, PJSC Detsky Mir will be separated from Detsky Mir LLC as a subsidiary operating company. Shareholders may demand the redemption of their securities.

At the same time, the amount that PJSC Detsky Mir can spend to repurchase shares must not exceed 10% of the net asset value of PJSC Detsky Mir at the date of the meeting. Now its cost is estimated at 1.6 billion rubles.

“The company draws the attention of non-resident investors from non-friendly jurisdictions that the funds received in the share buyback process will be credited to “C” type accounts in Russian banks. The possibility of using funds in type “C” accounts is limited by Russian law,” the retailer warned.

= They also added that they intend to apply to the government to allow the payment of funds to investors from hostile countries, bypassing the “C” type accounts.

After the completion of the reorganization, the shareholders will be able to exchange their shares for securities of a subsidiary, and in 2023 they will be able to sell them.