15th Dec 2005 09:41
Pyaterochka Holding N.V.15 December 2005 THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE RUSSIAN FEDERATION, AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OF AMERICA. 15 December 2005 PYATEROCHKA ACQUIRES 25 STORES IN MOSCOW AREA Pyaterochka Holding NV, Russia's leading grocery retailer, today signed anagreement to acquire CPT - the largest franchisee of the Kopeika retail chain inMoscow and the greater Moscow area with a total of 25 stores. Following the acquisition, Pyaterochka will increase the number of stores inMoscow by 14 and the Moscow region by 9 stores, and will add 2 stores in thecity of Vladimir. The acquisition adds net selling space of approximately 11,800square metres. Of the 25 stores, 12 are owned and 13 are on long-term leases.The consideration paid is US $90 million including US $7 million of assumeddebt. Under Russian accounting standards, CPT's projected 2005 sales are in therange of US $110 - $120 million. Oleg Vysotsky, the CEO of Pyaterochka, commented on the acquisition, "Theacquisition of CPT will significantly enhance Pyaterochka's competitive positionin the strategically important Moscow market, following another year of robustgrowth in this region. The acquired stores are situated in very attractivelocations, have a similar discounter format to our own and similar averageselling space. We are confident that rebranding of the acquired stores will becompleted within the next two months and that we will be able to quicklyintegrate the acquired stores into our existing business." Pyaterochka will assume operational control of the acquired stores withimmediate effect. The acquisition is expected to close in February 2006 and willbe financed from the proceeds of the forthcoming 3 billion Ruble bond issue. Igor Pletnev, CPT's General Manager, said, "We have been in discussion withPyaterochka about these locations for some time. Pyaterochka is a highlyrespected competitor of Kopeika, and we believe the deal we have agreed withthem will be to our mutual benefit." - End - Enquiries to: Tanja Djurdjevic Citigate Dewe Rogerson Investor Relations David Westover / Marina Zakharova / Mobile : +7 095 724 6414 Lucie Holloway Email : [email protected] +44 (0)20 7638 9571 Notes to Editors: Pyaterochka is the largest grocery retailer in Russia in terms of sales, with achain of 310 company-managed stores located in the Moscow and St. Petersburgareas as of 9 December 2005. In addition to the company's own stores, franchisees operate 400Pyaterochka-branded stores in the Russian regions outside of Moscow and St.Petersburg, Kazakhstan and Ukraine as of 9 December 2005. Pyaterochka's stores are conveniently located "soft" discount stores, open sevendays a week from 9am to 10pm, offering a product range of up to 4,500 itemscovering the day-to-day needs of its customers. The information contained herein is not for publication or distribution in theUnited States of America. These materials do not contain or constitute an offerof securities for sale in the United States. The securities of PyaterochkaHolding N.V. have not been and will not be registered under the U.S. SecuritiesAct of 1933, as amended, and may not be offered or sold in the United Statesabsent registration under that Act or an available exemption from it. This announcement does not constitute an advertisement, an offer to sell or thesolicitation of an offer to purchase any securities in the Russian Federation orany other jurisdiction. These materials are directed only at (a) persons who have professionalexperience in matters relating to investments who fall within Article 19(1) ofthe Financial Services and Markets Act 2000 (Financial Promotion) Order 2001(the "Order") or (b) high net worth entities, and other persons to whom it mayotherwise lawfully be communicated, falling within Article 49(1) of the Order(all such persons together being referred to as "relevant persons"). Any personwho is not a relevant person should not act or rely on these materials. Personsdistributing these materials must satisfy themselves that it is lawful to do so. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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