Victoria

Dixy Group Completed Acquisition of Victoria

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Dixy Group closed acquisition deal of Victoria chain with total value Rub 25.6bln, including debt. To finance the deal the company offered 38.75mln shares, each Rub 391 worth, and raised a 4.5bln rubles loan. The major shareholder Merkuriy participated in follow-on offering.

Victoria operates 257 stores in Central and North-Western federal districts, as well as in Kaliningrad region, but only 35 of them will change their name in 2011 (with Rub 1mln investment pro each store). The significant part of integration expenses will fall on 2012. The expected earnings in 2011 will amount to Rub 34bln. The consolidated turnover of Dixy Group will reach approximately Rub 115bln.

Source: www.retail.ru

Dixy Buys Victoria

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Russian food retailer Dixy said it will acquire rival Victoria Group in a cash and share deal worth 25.6 billion roubles to become the nation’s third largest retailer by revenue and shops. Victoria’s shareholders will become minority shareholders of the new joint company, Dixy will hold the controlling stake – 50% of the shares plus one share. The total amount of transaction is RUB 25.6 bn.

On May, 12 2011 the Federal antimonopoly service of the Russian Federation satisfied a motion for the purchase of 100% shares of Victoria on one condition: Victoria should close all the stores in Serpukhov (a satellite town in the Moscow Region).

Dixy, controlled by tycoon Igor Kesayev via the Mercury Group, is in the midst of a rapid expansion drive to take advantage of strong growth in domestic consumer spending amid a broader economic recovery.

Source: www.retailer.ru, www.reuters.com

Russian Retail Market: Dixy Increased Q1 Profit by 27%

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The large Russian food retailer Dixy reported the Q1 net profit growth by 27% up to 164.1m rubles. Net retail sales increased by 21% to 181.1bn rubles; EBITDA grew by 28% to 1bn rubles. The like-for-like sales soared by 7.6%. Dixy is preparing a RUB 25.6bn acquisition deal with Victoria retail chain. The control packet of Dixy shares (63.7%) belongs to the multi-field holding company Merkuriy, owned by Igor Kesayev.

Source: www.retailer.ru

Russian Retail Market: Victoria’s Profit Increased

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In 2010 the consolidated net profit of the large Russian retail chain Victoria grew 2,4 times y-o-y and reached RUB 831.14m. Net profit in 2009 was RUB 350.93m. Net retail sales in 2010 grew by 12.2% up to RUB 34bn. Victoria’s total profit gained 14.7% and reached RUB 11bn, operational profit grew by 41.5% to RUB 1.74bn. EBITDA almost doubled from RUB 702.8m in 2009 to RUB 1.4bn in 2010.

Source: www.retail.ru