Safmar buys 57.7% of shares of consumer electronics retailer “”

MVIDEO stores

Financial group “Safmar” will buy a controlling stake in consumer electronics retailer “” for more than $1 billion, “” is the third largest Russian retailer of technology that falls under the control Safmar for the last time. is the largest Russian consumer electronic retail chain by revenue. The Company started its operations in 1993. runs 382 brand name stores in 162 Russian cities as of June 30, 2016. The selling space of stores accounts to 649,000 sq. m while the total space accounts to 872,000 sq. m.

The head of “Safmar” Mikhail Gutseriev is ready to purchase 100% of the shares of the Cyprus based investment company “Svece” owned by “” head Alexander Tynkovan and its partners, at a price of $7 apiece as stated in the SPA. “Svece” owned 57.7% of “M. Video” shares, therefore controlling stake will go to Safmar. The rest of the company’s shares are in free float on the Moscow exchange. Gutseriev’s Safmar will make an offer to the minority shareholders. After the transaction, the management of “” will continue to manage the network.

The authorized capital of PJSC “M. Video” is 1,798 billion rubles and is divided into 179,768 million shares with par value of ten rubles each. Thus, Safmar could buy 57,7% of the shares for 726,1 million dollars, and the whole company was estimated at 1,258 billion.

In December 2016, investors associated with Safmar bought “Eldorado” (second largest consumer electronics chain) from the Czech PPF Group N. V. and EMMA Capital . Buyers walked away with 100% of the shares of the retailer, the terms of the transaction were not disclosed.

With the acquisition of MDM-Bank at the end of 2015 Safmar gained control of CE retailer “Tehnosila”.



  1. Lagranolia Holdings Limited through which the “Safmar” owns “” announced the intention to sell approximately 44.33 million ordinary shares of “M. Video” (about to 24.66% of the share capital). Securities will be offered for the acquisition to international institutional investors.

  2. “Safmar” wants “M. video” to become “blue chip”? “We initially focused on maintaining the public status of the company with a full free float [paper in free circulation] for more efficient operation and high standards of corporate governance”. Maybe, but Lagranolia Holdings (Safmar) sold to 24.66% of the retailer in an accelerated mode: on 26 July in the evening, the retailer announced the offer to investors, and by 10am on 27 July the sale was completed. For a package in the retailer shareholder earned 17,95 billion roubles – the same package Safmar has acquired as a result of the offer for minority shareholders of 17.7 billion roubles on closing of this transaction announced a few hours before the announcement of the SPO. The difference in price was minimal, the seller has spent money for services of the organizer of the deal too. Urgent resale might be necessary becuase when Safmar was buying the stake from minority shareholders the company has borrowed money in the bank and now they urgently needed to pay the borrowed money back, or to finance other segments of “Safmar” business.

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