VTB Group becomes a shareholder of Magnit
VTB Group signed an agreement with Sergei Galitsky, the owner of Magnit, to acquire a 29.1% of his stake in the company. The transaction volume will amount to approximately RUB 138bn. Completion of the deal requires obtaining approval from the Federal Antimonopoly Service of the Russian Federation. Currently Magnit is the largest retail network in Russia by the number of stores and one of the market leaders in terms of operational efficiency. Over 20-year history of the company’s successful development practically reflected the transition of Russian product retail industry from unorganized, traditional retail to a modern network sales format in line with best international practices. VTB Group already has tremendous experience of successful investments into Russian companies, and in particular, large expertise in the retail sector. Over the past nine years more than 22 major large-scale investments worth over $15bn were executed. Based on VTB Group’s experience in the retail industry, due to the unique logistics platform and an efficient business model, Magnit has significant potential for future development. Andrey Kostin, Chairman and President of VTB Bank Management Board, noted that currently the global retail market is undergoing a period of significant transformation caused by rising consumer demands and preferences, mutual penetration of online and offline sales channels and increased role of high technologies. In Russia, we see vast potential for this segment’s perspectives, and using VTB Group’s expertise and financial resources we plan to take Magnit to a new level of its development, noted VTB’s CEO.