30th Jan 2015 08:37
LONDON (Alliance News) - Aurora Russia Ltd said Friday it has sold its 24.3% shareholding in Russian DIY retailer Superstroy through an intermediate company, Grindelia Holdings Ltd, for GBP680,000.
The shareholding was valued at GBP280,000 as at end-September last year, as a result of Superstroy's loss-making position in 2014, and the decline of the rouble against sterling.
Aurora said that due to the "current circumstances" in the region, and specifically at Superstroy, mean it will require substantial restructuring to return the retailer to profitability. As a result, it believes the proceeds it achieved were "as good as the company could realistically expect to obtain".
The company will now review its structure and cost base due to the fact that it has now only one residual investment, a minority holding in Unistream Commercial Bank OJSC.
Shares in Aurora Russia are trading up 9.5% at 8.90 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Aurrigo