RDIF Leads Secondary Public Offering in Russian Retail Chain

SWF Institute, 21.10.2015

On October 21, the Russian Direct Investment Fund (RDIF) became an anchor investor in the secondary public offering of St. Petersburg-based Lenta Ltd., a mega food retail chain in Russia. RDIF was joined by other investors including funds from the Middle East. Lenta raised US$ 150 million, placing about 21,126,000 new global depository receipts (GDR). The European Bank for Reconstruction and Development placed 17,623,240 GDRs, lowering down to a 7.4% stake in the company, while keeping its board seat. Lenta’s free float has increased to 57.54%. Private equity firm TPG Group, through Luna Inc., holds a 34% stake in the company. TPG and VTB jointly invested in Lenta back in 2009.

RDIF was a minority investor in Lenta before the secondary offering. RDIF was an anchor investor in Lenta’s US$ 225 million global depository receipts placing.

Credit Suisse, JP Morgan and VTB Capital acted as joint global coordinators and joint bookrunners with the placing. Lenta is listed on the London Stock Exchange and on the Moscow Exchange.

Lenta plans to open at least 40 new hypermarkets in 2016. Lenta was founded in 1993 in St. Petersburg as a cash and carry store. Lenta operates 121 hypermarkets in 63 cities across Russia and 27 supermarkets in the Moscow region with a total of approximately 782,222 square meters of selling space.