RCIF to invest in Detsky mir
The Russia-China Investment Fund (RCIF) is to make an investment in JSC Detsky mir, the biggest player in children's merchandise in Russia.
Currently, 100 per cent of the company's share capital is controlled by Sistema JSFC.
Under the terms of the deal, most of the investment will be spent towards future development, in particular plans to open new shops and build additional logistics centres.
RCIF's investment will support the development of the chain by providing modern systems and distribution channels of children's goods in the Russian regions.
Kirill Dmitriev, co-chief executive of RCIF, says: “We are delighted to invest in Detsky mir, which is a fast developing market leader. Almost a third of the chain's shops have been opened within the last two years. Our investment will improve efficiency and support Russia's growing demographic providing access to high-quality children's goods at affordable prices. The investment will contribute further to the development of the production, logistics and transport sectors in Russia and China.”
Mikhail Shamolin, president and CEO of Sistema, says: “We are pleased to announce a proposed cooperation with the Russia-China Investment Fund which marks an important step in expanding our partnerships in Asia. Sistema has a long standing track record of establishing best-in-class companies. Detsky mir is a rapidly developing retailer with excellent growth prospects and a talented management team. RCIF's proposed investment will help expand Detsky mir's network in Russia and unlock further value for all stakeholders.”