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March 15, 2019 www.intellinews.com I Page 15
Russia's MTS completes sale of 18.7% of online retailer Ozon to Sistema
IntelliNews Pro
One of Russia’s "big four" mobile operators Mobile TeleSystems (MTS) completed the sale of 18.7% stake in Russian online retailer Ozon Holdings
to multi-industry investment conglomerate AFK Sistema for RUB7.9bn ($120mn).
As a result of the deal the share of Sistema in Ozon will reach 19.3%, with another 16.3% held by Sistema's venture fund Sistema_VC.
Notably, previously the main owner of Sistema Vladimir Yevtushenko said that Ozon's largest shareholders Sistema and Baring Vostok Capital Partners (BVCP) fund intend to increase their respective shares to 40% and develop the retailer for an IPO, Vedomosti daily reminds on March 14.
"The deal suggests a RUB42bn valuation for 100% Ozon. The price is at the lower end of valuations for the recent deals, in which Sistema and Baring Vostok increased their stakes in Ozon," Maria Sukhanova of BCS Global Markets estimated in February when the deal was first announced.
The price suggests about 30% premium to MTS investments, and 10% annualized return, the analyst added, commenting that strategy-wise, BCS was "not big believers in the synergies between the carrier and e-tailer.”
In December Ozon said that it intends to raise several hundreds of million dollars in equity in 2019 to support new investments in logistics and IT. With giant capital injections in 2011 ($100mn), 2014 ($150mn) and 2018 (up to $92mn), Ozon is one of the most well-funded Russian e-commerce companies.
Russian blue chips dividend stocks set to out perform
The Russian leading stock index the dollar denominated Russia Trading System (RTS) has been largely range bound for most of the last four years. But Russia pays the highest dividends in the world, the Fed easing means a “wall of money” is headed to emerging markets and the best names are reporting record profits. Some stocks are flying.
Ben Aris, editor-in-chief of bne IntelliNews talks with Slava Solyaninov, the chief strategist at BCS GM about some of the more interesting stories in the market including: Lukoil, Novatek, Gazprom, Sberbank, Tinkoff Bank and RusAl.
Slava Solyaninov,
Chief Strategist at BCS GM
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