Foreign investor interest in Detsky Mir SPO strong - RDIF chief

Interfax, 20.11.2019

MOSCOW. Nov 20 (Interfax) - Foreign investors are showing a lot of interest in the SPO by children's goods retailer Detsky Mir, Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF), told reporters on the sidelines of VTB Capital's Russia Calling! Forum.

Detky Mir's core shareholders, which are AFK Sistema (MOEX: AFKS) and the Russian-Chinse Investment Fund, set up by the RDIF and China Investment Corporation, announced the SPO at the end of last week.

"We see significant interest [in the SPO]. There are a lot of funds, some European ones and of course Chinese and Middle Eastern funds. They can all see the growth in results that Detsky Mir (MOEX: DSKY) is demonstrating, how actively the company is growing," Dmitriev said.

Investors will be offered at least 150 million existing shares in Detsky Mir.

The offering consists exclusively of existing shares held by Sistema directly and the RCIF via its investment vehicles Floette Holdings Limited and Exarzo Holdings Limited.

Detsky Mir began a series of investor meetings in relation to the offering on November 18, 2019. The bookbuilding period begann the same day and is expected to close on or about November 21, 2019.

The number of shares to be placed and the offering price will be determined at the close of the bookbuild, and the results will be announced as soon as practicable thereafter.

Based on the proposed minimum size of the offering, Sistema will retain no more than a 36.0% stake in Detsky Mir and the RCIF will retain no more than a 9.7% stake in the company.