Page 10 - bne_Tech_04_2020

Investment
April 2020 www.intellinews.com I Page 10
Russian e-commerce major Ozon raises another $150mn for logistics
Russian e-commerce major Ozon has announced it is raising $50mn loan from US-based investment firm Princeville Capital, as well as $100mn from existing investors Baring Vostok Capital Partners and the AFK Sistema multi- industry investment conglomerate.
“This latest round of financing was secured as a convertible loan that can be turned into equity,” the company said in a press-release. Ozon noted that the funds raised will support the company’s plans to “significantly expand its logistics and technology infrastructure.”
As reported by bne IntelliNews, last month Ozon reiterated its $300mn investment into the development of logistics solutions in the next 2-3 years. Ozon plans to open at least five new fulfillment hubs in Russia’s regions and grow its last-mile logistics network at least threefold in 2020-2021.
In 2019 the retailer's revenue growth was clipped by unresolved logistics and infrastructure issues. Nevertheless, Ozon’s valuation improved in 2020,
and in addition Russian e-commerce majors are seeing a boost in sales amidst the spread of the coronavirus (COVID-19).
This week AFK Sistema said it had converted previously issued loans, raising its stake in Ozon from 21.9% to 31.3%. The total holding (including System VC stake) increased to 43%.
With giant capital injections in 2011 ($100mn), 2014 ($150mn), 2018 (up to $92mn) and 2019 ($155mn), Ozon is one of the most well-funded Russian e-commerce companies. Previous estimates put the needs of Ozon for additional funding at $200mn.
"Ozon needs cash for expansion; no surprise," BCS Global Markets commented on April 1,
while welcoming new interest in the company from Princeville, on top of existing shareholders. Still, BCS GM sees Sistema’s need to support nonpublic subsidiaries such as Ozon as one of the the reasons why we the recommendation on its shares has been downgraded to Hold last week.
EC gives green light to acquisition of Bulgaria’s Vivacom by United Group
The European Commission said on April 6 it has approved the acquisition of Bulgaria’s largest telecoms operator Vivacom by Balkan telecoms and media company United Group, owned by private equity investor BC Partners.
The deal was signed in November as the telco was offered for sale in July to buy the company,
whose market value was estimated between €1.2bn and €1.3bn.
“The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of the whole of Viva Telecom Bulgaria OOD and its subsidiary, the Bulgarian Telecommunications Company EAD (together