The main owners of the largest seller of children’s goods in Russia “Detsky Mir” AFK “System” Vladimir Yevtushenkov and the Russian-Chinese investment Fund (RCIF) will sell nearly 16% of its shares. The cost of the transaction is approximately RUB 11 billion At the end of the free float, “Children’s world” will grow approximately to 75%, which should help attract a broader range of investors.AFK “System” Vladimir Yevtushenkov and RCIF (created by the Russian direct investment Fund and China Investment Corporation) will sell of 15.94% of shares of “Children’s world”. This “System” has informed on Wednesday. In General, the selling shareholders will receive of 10.95 billion rubles, including “System” — 8.93 billion rubles, is spoken in the message of the AFC. Following the transaction the share of “System” in the “Children’s world” will decrease of 33.38% to 20.38%, RCIF — from 7.56% to 4.62%. The Free float will be approximately at the level of 75%. The selling shareholders have committed to netcasting of shares (lock-up) within 90 days from the date of completion of the offering, except in some market for this kind of deals exceptions.”Detsky Mir” — the largest seller of children’s goods in Russia. At the end of March the group included 772 eponymous shop, 46 points under the brand ELC, ABC 12 objects and 11 stores for animals, “Tozeur”. The group’s revenue for the first quarter increased by 11.2% to 31 billion rubles, it said in statements.This is not the first sale of the shares “Children’s world” to investors in recent years. At the end of 2019 and RCIF held SPO “Children’s world”, having 23.7% of the network 15,92 billion rubles. most of the buyers were international investment funds from Britain, continental Europe and the United States. On June 15, the paper “Children’s world” on the exchange cost 117,72 RUB per share, by this morning, the price has dropped to 96.8 RUB per share, from the data of the Moscow exchange.The AFC added that the demand far exceeded the supply: it was the highest for all public placements of “Children’s world”, which allowed to sell shares of a wide range of investors. Among the buyers 63% were foreigners, 37% of Russian investors, said in the “System”. At the end of March consolidated net debt “System” was 623,01 billion rubles, follows from the statements.According to the President of AFK “System” (previously headed “Children’s world”), Vladimir Chirkova, an increase in the proportion of securities in free float and the liquidity of the shares “Children’s world” will dramatically increase, which will attract a broader range of investors. The AFC remains a major shareholder of “Children’s world” and will continue to support its strategic development aimed at strengthening leadership in the market, the development of online sales channels and expanding the geography of presence, said a top Manager.CEO of RDIF and General co-Director RCIF Kirill Dmitriev added that more than 60% of the book was signed by leading international funds from Europe, Amer��CI and Asia. “We see tremendous interest and opportunities for Russian companies going public and raising capital from leading international investors despite the global impact of the pandemic,” he said.Senior analyst at Gazprombank Marat Ibragimov recalls that for the Russian holding companies dividends in the structures where they own less than 50%, are taxed on profits because the reduction of the share AFK in “Children’s world” was expected. He predicts that the Corporation will continue to sell shares of the network, especially that of recently released preliminary financial results, it follows that the investment attractiveness of the “Children’s world” is growing.Anatoly Kostyriv
