Moscow, Russia – 19 October 2022
– Sistema PJSFC (“Sistema” or the “Corporation”)
(LSE: SSA, MOEX: AFKS), a publicly traded Russian investment company,
announces that it has entered into binding agreements to acquire a
47.7% stake in Melon Fashion Group JSC (“Melon Fashion Group” or
the “Company”), a leading Russian fashion manufacturer and
retailer, from the Swedish Eastnine and East Capital Holding AB, as
well as a group of individual investors, for RUB 15.8 billion (the
“Transaction”).
Sistema will finance the Transaction with its own
and borrowed funds. The completion of the Transaction is anticipated
by the end of 2022 subject to further regulatory approvals and
satisfaction of certain conditions stipulated by the parties to the
Transaction.
About Melon Fashion
Group
Melon
Fashion Group, together with its subsidiaries and affiliates, is
one of the largest and fastest-growing fashion retailers in Russia;
it owns and operates the Zarina, befree, Love Republic and Sela
brands. Founded in 2005, the Company is engaged in the full cycle of
fashion production, from modelling to sales distribution and
promotion. Melon Fashion Group operates in 181 cities in Russia and
the CIS (Kazakhstan, Armenia and Belarus). As of the end of 2021, the
Company consisted of 845 stores with total retail space of 227 thsd
sq. m; its share of online sales was 32%. Melon Fashion Group’s
revenue in 2021 reached RUB 37.5 billion (up 49% year-on-year), and
its EBITDA increased by 38% year-on-year to RUB 8.6 billion. The
Company’s net profit was RUB 3.5 billion. The company had no loans
and borrowings as of the end of 2021; cash and cash equivalents
amounted to RUB 5.2 billion.
Sistema
President Tagir Sitdekov said: “Melon Fashion Group is
growing fast and demonstrating operational excellence. The
Transaction is entirely in line with our investment strategy, which
is focused on consolidating high-quality assets as well as leveraging
opportunities arising from the ongoing market transformation. With
our extensive experience in building leaders in Russian retail, we
will be delighted to take part in the next stage of Melon Fashion
Group’s development and to play a role in further increasing the
value of its business.”
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For further information, please visit
www.sistema.ru or contact:
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