Blog: Lenta joins Metro with plan for Russian retail London listing
Dean Best | 3 February 2014
Lenta has ambitions to further expand in Russia
Russian hypermarket operator Lenta has set out plans for a listing in London. If successful, Lenta will join Russian peers X5 Retail Group and Magnit with shares trading in the UK capital - although it will be competing for attention with Metro Group, which plans to float its Russian cash-and-carry arm here.
Lenta has 77 hypermarkets in 45 cities across Russia, plus ten supermarkets in and around Moscow.
The retailer, in which private-equity firm TPG Capital owns a 49.8% stake, said it is the second-largest hypermarket operator in Russia and has plans to expand further.
Today's (3 February) announcements comes two weeks after German retail giant Metro said it would float part of its Russian cash-and-carry business in London.
Metro, which had been looking at options for funding for expansion, said it would look to list 25% of the division during the first half of the year.
Lenta CEO Jan Dunning said the float was a "major milestone" for the business. The retailer has shown signs of strong performance after a tumultuous year at the start of the decade that saw a public spat between its then major shareholders over who should be its CEO - a dispute that saw Dunning, then Lenta's CEO, leave the retailer in 2010.
However, a deal in 2011 brought an end to the saga when the two warring shareholders reached an agreement. PE firms TPG and VTB, which owned 30% of Lenta through a venture, teamed up with the European Bank for Reconstruction and Development to buy out their sparring partner and the retailer's largest shareholder, the Svoboda Corporation.
Reports emerged last summer that Lenta could be floated. One Russia-based analyst then told just-food the retailer had a number of attributes that could make it an attractive proposition for investors.
"It could attract a good amount of interest. It has decent growth and good margins compared to its peers. It is exposed to a high growth market and it could - at some point down the road - become an acquisition target itself, given the acquisitive nature of Russian retail," the analyst said on the condition of anonymity.
Premier Foods plc has established an independent business unit that will focus on supporting growth overseas, chief executive Gavin Darby revealed today (22 July)....
There has been an increase in M&A among companies in the food sector in recent months - and management consultants at EY expect to the trend to continue....
Nelson Peltz is not letting go. The US billionaire investor is continuing in his quest to get PepsiCo to split in two - and has reportedly suggested a proxy battle with the company could be on the hor...
just-food has launched a section on its website dedicated to interviewing internationally-ambitious small- and medium-sized enterprises. ...
UK ready-meals supplier S&A Foods has announced a restructure that is expected to see 55 jobs axed. ...
The boom in demand for dairy products in emerging markets has been underlined by the latest data on the largest companies in the industry....
- On the move: What's in store from Tesco's new CEO?
- Focus: Lindt plays safe with Russell Stover buy
- just the answer: Birds Eye UK Margaret Jobling
- On the money: Steady as she goes at Cloetta
- Comment: ConAgra failing to address core issues
- Ferrero seals deal for hazelnut firm Oltan
- Campbell issues warning on 2014/15 fiscal year
- Premier launches Oxo pots range in UK
- Genius secures listings in French supermarkets
- Universal Robina to buy biscuit firm Griffin's