Marta wants to sell 25% of the network to a portfolio investor

retail

The Marta holding is negotiating the sale of a 25% stake in the Grossmart chain to portfolio investors. According to Kommersant's information, the holding intends to earn at least $70-80 million for the blocking stake in Grossmart. In addition, Marta is considering the possibility of selling 25% of the Pur Pur accessory store chain, which has not yet been built. The holding needs money for further development of the network, analysts say.

“Marta” sent out an offer to investment funds to purchase a 25% stake in the Grossmart chain, Marta vice-president Alexey Linkov told Kommersant. He refused to name the amount that the holding expects to earn for the package, but clarified that the funds will be spent on developing the network.

Several investment bankers know about Marta's plans, but they say that no agreements have been reached yet. One of them said that Marta shareholders want to get $70-80 million for the blocking stake in Grossmart. According to a Kommersant source, the deal could take place no earlier than February 2007. Mr. Linkov did not comment on the timing and amount of the possible transaction.

In addition, Marta plans to sell a 25% stake in its new Pur Pur accessories chain, said Alexey Linkov. Among the potential buyers of part of the network, he named Renaissance Investment Management, the Swedish investment fund East Capital and the Kazakh group Meridian. Vice President of the Renaissance Investment Management group Natalya Ivanova confirmed that the company is currently considering the possibility of purchasing “one of Martha’s assets.”

Holding "Marta" was founded in 1992. Manages the retail chains Grossmart, Pur Pur, online electronics stores 003.ru, m3x.ru, byttehnika.ru. The holding owns the development company RTM, the Bunkovo polypropylene factory and other assets. Marta also owns 25% of Billa LLC, operator of the Billa supermarket chain (75% is owned by the German REWE Group). 75% of Marta belongs to Georgy Trefilov, 25% to Boris Vasiliev. The holding's turnover in 2005 was $442.7 million.

According to Uralsib FC analyst Dmitry Dudkin, Marta’s decision to sell part of Grossmart to a portfolio investor is due to the holding’s limited ability to attract credit resources: “The company has a very large debt: in 2005, the debt-to-EBITDA ratio was 6.5. and the market average is 2-3". Grossmart has already mortgaged most of its real estate, so Marta cannot receive loans against it. “The company’s plans include purchasing regional players, portfolio investments can help Marta implement them,” said a representative of a large investment company, who wished to remain anonymous. He and Finam Investment Company analyst Sergei Filchenkov value Grossmart at $280-300 million. “Selling shares to a portfolio investor is the least risky way to get funds. Thus, they will be able to get funds without increasing their existing debt,” says Mr. Dudkin .

In the regions, the Marta chain is represented weaker than its competitors, for example, the same Perekrestok, states Igor Nikolaev, deputy general director for development of the Victoria Group. And Grossmart seeks to develop through regional acquisitions, which requires additional funds, adds Nikolai Gabyshev, deputy general director of Paterson. However, Marta will probably spend most of the proceeds from the sale of the Grossmart stake on refinancing the existing debt, he is sure.

Kristina Kommersant-Busko

"Grossmart" does not have enough for development