VTB Capital announces closure of Lenta stake acquisition in co-operation with TPG Capital
VTB Capital in co-operation with TPG Capital has successfully closed its deal to purchase a 35.4% stake in Lenta. With its 36 hypermarkets, Lenta is one of the leading retail chains in Russia.
The experience of VTB Capital in arranging deals in the Russian market allowed the successful closure of the deal despite the fact that a number of investors also sought to acquire the stake.
The deal was supported by all shareholders of the company, with whom VTB Capital and TPG Capital look forward to working in future. The shareholders intend to come to a joint viewpoint with respect to the long-term strategy of developing Lenta in the Russian retail market, especially in the regions. The investors intend to maximize the shareholder value of the company by improving operational management and strengthening the system of financial control.
Yuri Soloviev, President and Global CEO at VTB Capital, noted: “It is very important for VTB Capital to participate in investment projects in socially significant spheres of the Russian economy, particularly in retail business. We continue to support key sectors of the Russian economy. The acquisition of a 35.4% stake in Lenta is but another example of implementation of VTB Capital’s strategy of investing in private companies in Russia and CIS.”
Tim Demchenko, Global Head of Private Equity and Special Situations at VTB Capital, said: “We are pleased with our partnership with TPG Capital and expect mutually beneficial co-operation aimed at improvement of the operational indicators of the business by bringing in top international experience.”
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