MOSCOW, Sept 1 (Reuters) - Russian conglomerate Sistema said on Tuesday that along with the Russia-China Investment Fund (RCIF) it was selling up to 25% of the shares in Russia’s biggest toy retailer Detsky Mir.
The sale, which follows others this year by the partners, will see them sell out completely from Detsky Mir, which offers toys, baby food and other products.
Sistema and RCIF - a joint venture of the Russian Direct Investment Fund and China Investment Corporation - are offering up to 184,750,001 existing shares in Detsky Mir via a so-called accelerated bookbuilding process, Sistema said in a statement.
Credit Suisse, Goldman Sachs, Sberbank CIB, VTB Capital and Alfa Bank are arranging the deal, which will see Sistema and RCIF sell 20.38% and 4.62% in Detsky Mir respectively and the offering will increase Detsky Mir’s free float to almost 100%.
Sistema plans to use part of the proceeds to cut debt.
Detsky Mir shares were 3% lower in Moscow after Sistema’s statement. Based on their closing price on Monday, the 25% stake is worth 21.6 billion roubles ($294 million).
The retailer, which has boosted its stores by more than a third to 850 since listing in 2017, plans a new compact format to target smaller towns and ramp up online sales.
The share offering was oversubscribed on Tuesday, indicating that demand exceeds the size of the deal, a bookrunner said.
$1 = 73.4940 roubles Reporting by Nadezhda Tsydenova and Polina Devitt; Writing by Polina Devitt; Editing by Alexander Smith
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