Last week Carrefour offered Russian retailers to open stores under its brand, Magnit started preparing for the additional issue, a new legal action was taken against the ex-director of Eldorado Ltd., etc.
The Russian Carrefour office informed that the Carrefour hypermarkets in Krasnodar and Moscow would continue working under ordinary conditions up to selling the business.
Later it became known that in spite of the fact that Carrefour was curtailing its business in Russia, it offered local retailers to open stores under the French brand. The Magnit network received an offer to convert its 21 hypermarkets under the Carrefour brand and refused it. The network’s third hypermarket in Lipetsk with the size of 9000 square meters in the shopping center Europa is to be opened in the schedule time in November.
In spite of the unsuccessful attempt to purchase the St.Petersburg network Lenta, the Finnish company Kesko doesn’t give up hope to bring its hypermarket network K-Food to the Russian market. The Finnish got interested in the stores of Carrefour, which is leaving Russia. Apart of Kesko, other major retailers such as Lenta, O’Key, Auchan and X5 Retail Group also pretend to the Carrefour areas.
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A bank became one of the contractors, which threaten Novye Torgovye Systemy with its sister companies’ bankruptcy. The retailer hasn’t paid to Banque Societe Generale Vostok for almost a year. Now it has already got the past-due accounts a 15.15 million rubles to the bank.
Mosmart Finance Ltd. again allowed the technical default after not paying the fifth coupon of the first-issue bonds a 2 billion rubles. The total size of the interest to be paid under the fifth coupon (the rate is 17%) came up to about 6.3 million rubles.
Mosmart also failed to purchase the offer of the first-issue bonds a 42.7 million rubles.
Bank Uralsib, which is among the top 30 major Russian banks, sold its 14.2% of the shares and left the capital of Torgovyi Dom “Kopeika” Public Corporation managing a large Russian discounter network.
Magnit started negotiating with the investors on selling the additional issue shares a 11.2 million shares. The retailer means to attract about $350 million. On the basis of the Magnit shares’ commercial value a $69.5 per unit it might be assumed that the company will either give the investors a 50% discount or sell a part of the additional issue shares. The analysts estimate that the retailer will only sell a half of the new issue shares at the exchange stock, and the discount will come up to about 10%.
Magnit will direct the funds attracted from selling the additional issue shares at the London exchange stock, MICEX and RTS to developing and refinancing the present debt.
During the future issue selling the trading network Magnit and its three co-owners are to sell about 9% of the company shares. The retailer will earn $365 million, and about $160 million will go to its owners.
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The Ministry of Internal Affairs of the Russian Federation brought another criminal action against Alexander Shifrin, the ex-director of Eldorado Ltd. In its turn the Eldorado network declared that the criminal case against Alexander Shifrin had nothing to do with the network and didn’t infringe its activity.
Another incident at 4 billion rubles was added to the present case at 7.3 billion rubles. Alexander Shirfin himself is wanted by the police since April.
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The Federal Antimonopoly Service recommended the Ministry of Industry and Trade and the State Duma Committee on Economical Policy and Enterprise to postpone the effectiveness of Article 16 of the Trade Law forbidding the development of the networks with the 25% share in municipalities, in Moscow and St.Petersburg.
During the Parliament hearings Stanislav Naumov, Deputy Minister of Industry and Trade, declared that Article 16 of the Trade Law had to remain.
Apart from the scandalous Trade Law the industry will receive the development strategy for the next 5 years by the end of 2009. The Ministry of Industry and Trade has already started working on it. Its coverage includes not only the retail, but also the wholesale business.
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The history of searches at the jewelry holding Altyn received its unexpected continuation. As it was found out, the major part of the goods withdrawn during the searches was produced by the Russian plants quite legally and belonged to the physical and juridical bodies having nothing to do with Altyn. They submitted several companies limited, which leased the trading places from Altyn, with the jewelry for selling and now demanded the withdrawn jewelry back.
The arrest of Major General Victor Syusyura, head of the Ministry of Internal Affairs of the Buryatiya Republic, relates to the criminal case of the jewelry smuggling, which earlier was brought against the leaders of the jewelry holding Altyn.
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Bank VTB, the new owner of Detskiy Mir department store at Lubyanka, is not satisfied by the store reconstruction project and is going to review it. The bank representatives would like to use the rentable areas of the main child store in a more effective way – they promise to double the size of the trade areas and add the grown-up clothes, products and entertainments to the child goods.
The apothecary network 36,6 experienced the change of the general director. Valeriya Solok inherited a financially recovered company from Jerry Kalmis, the ex-top manager of Vympelkom.
The first stores of the clothes network Brosko will open in Novosibirsk and Novokuznetsk. The company will invest up to 120 million rubles in the expansion.
Flo Ltd. decided to significantly increase the clothes selling networks Sasch, Flo&Jo and Glenfield in St.Petersburg. By autumn the number of stores under these brands will double increase.
The digest was prepared by Retailer.RU and was translated by iTrex company. Itrex is a translation bureau. It offers written and oral translation, notary certification and a lot more. Itrex does work with every language: European, Eastern languages and others. Itrex does work with every topic: technical, legal, financial, business, etc.
