Severgroup completed the acquisition of a 42% stake in Lenta at an EV of $3.1bn.

Severgroup, a private investment company that manages investments on behalf of Alexey Mordashov, completed the acquisition of a 42% stake in Lenta, an operator of hypermarket and supermarket stores, from Luna (34.44% stake), controlled together by TPG Capital and Russian VTB, and separately from the European Bank for Reconstruction and Development (7.47% stake) at a price of $18 per Lenta share. Accordingly, Severgroup intends to make a cash offer to acquire all of the issued and to be issued shares of Lenta and all of the Lenta GDR from the holders thereof. The offer price implies a value of approximately $1.8bn for 100% of the shares of Lenta, which represents: a premium of over 8% to the price of the Lenta GDRs on the LSE of $3.33 at the close of business on 26 March 2019, being the last London Business Day before the first announcement by Lenta regarding the possibility of the offer being made. "We are confident that combining Lenta's highly professional management team and excellent corporate culture with Severgroup's experience in building and managing successful businesses, deep expertise in both industrial and consumer sectors as well as in the digital & IT sector will enhance the company's position as a leading grocery player in terms of customer's service, offering and loyalty," Alexey Mordashov, Severgroup CEO.