Russia-China investment fund buys stake in retailer Detsky Mir

Reuters, Reuters News, 09.09.2014

(Reuters) - The Russia-China Investment Fund (RCIF) said on Tuesday it had agreed to buy a minority stake in Russian children's goods retailer Detsky Mir, controlled by oil-to-telecoms conglomerate Sistema.

RCIF, a joint venture between Russia Direct Investment Fund (RDIF) and China Investment Corp (CIC), said the bulk of the funds will be used by Detsky Mir to fund its expansion, including the opening of new shops and construction of additional logistics centres.

Sistema said in a separate statement the parties were in talks over the terms and structure of the deal and expected to sign binding agreements by the end of the year. (Reporting by Oksana Kobzeva and Maria Kiselyova, editing by Alexei Anishchuk)