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Russian retailer Lenta announces IPO.

February 4, 2014

Russian chain of hypermarkets Lenta confirmed previous unofficial reports and announced holding an IPO in London to be followed with a listing in Moscow . The amount of the offering will be determined based on demand and market situation. Shares held by TPG investment fund (49.8%), EBRD (21.5%), and VTB Capital Private Equity (11.7%) could be proposed. Analysts surveyed by Prime estimated that share price of Lenta could be 15%-20% lower that of Russia's leading retailer Magnit . Lenta's value is estimated at USD 6bn-USD 8bn. It is compared to other major chains such as X5, Okey, and Magnit . Its advantages are standardised franchise and business processes, low costs, high share of private labels sales. Previously Reuters reported that Lenta is preparing a USD 1bn IPO. Last year, Lenta already discussed an IPO in London worth of USD 1bn at a total valuation of USD 5bn . Reportedly JP Morgan, Credit Suisse , UBS, Deutsche Bank and VTB were going to organize the issue. Lenta is partially controlled by the U.S. investment company TPG and Russian VTB Capital .

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Source: IntelliNews - Weekly Reports

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