Lenta, the St. Petersburg-based retailer backed by US buyout firm TPG Capital, completed a $275 million share placement, the biggest share sale by a Russian company in almost two years.
Lenta placed $150 million of new stock at $7.10 per global depositary receipt to raise funds for store expansion, according to a statement Wednesday. Separately, the European Bank for Reconstruction & Development, sold $125 million of shares, lowering its stake to 7.4 per cent from 11.5 per cent.
The grocer is seeking to capitalise on improving market conditions as the rebound in oil and the delay in the US Federal Reserve’s rate increase have spurred appetite for Russian assets. As large food retailers continue to boost sales and expand market share amid a recession, Lenta’s $225 million offering in March and rival Magnit PJSC’s $143 million offering in February have been among Russia’s largest this year.
The company has posted the fastest sales growth among publicly-traded Russian retailers this year. It said Tuesday that it plans to open at least 40 new hypermarkets next year, up from a previous target of 32.
Lenta cut its 2015 sales growth target to 29 to 33 per cent on 16 October from an earlier forecast of 34 to 38 per cent, citing the volatile consumer and economic environments.
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