Page 99 - RusRPTOct19

Karusel stores (14 leased, 23 owned) will continue operate as hypermarkets with a view to being re-purposed, sold or closed, subject to test pilots and management analysis, BCS Global Markets said on September 26.
9.2.6 Agriculture corporate news
RusAgro's rental contracts for two plants in the milk division could be investigated, according to Kommersant, as the sale by one of the previous owners was cancelled by the court, jeopardising its subsequent liquidation and lease. Rusagro currently operates two milk plants in the Samara region and the Ulyanovsk region, with total capacity of 300 tonnes of milk per day. Operations were launched in 2018. The company had been considering the milk segment for a number of years as a strategically important business, offering low consolidation and appealing organic growth. In 1H19, Rusagro’s milk segment booked RUB1.8bn in revenues, representing 2% of the company total, and a RUB3mn loss on the EBITDA level. Amid the still vague outlook on the legal future of the rental contracts for the two milk plants, we note the limited impact on the company’s financials of the still emerging milk division.
9.2.7 TMT corporate news
Joint venture of Russian internet major and Uber Yandex.Taxi is valued at $7.7bn-$8.5bn by Goldman Sachs, Bank of America Merrill Lync, and Sberbank CIB, Forbes and The Bell reported on September 18. The valuation is almost on par with Yandex itself, which at $12.4bn valuation remains the most valuable Russian digital company. Yandex.Taxi is likely to sell new shares in an IPO, Reuters reported previously in June 25 citing the COO of Yandex Greg Abovsky.
Auchan has joined Tmall in Russia, which is a marketplace for Alibaba, the first tradition retailer to join a market place. The retailer offers 6,000- 7,000 non-food SKUs, including cosmetics, pet goods, electronics and household chemicals. Auchan is going to be responsible for delivery and customer service and by 2020 is to provide federal coverage for those, becoming the first leading traditional retailer to join the marketplace in Russia.
A1, investment vehicle of Alfa Group of billionaire Mikhail Fridman acquired a 51% stake in RusBioAlians vegetable and berry producer with 50,000 tonne annual capacity, Kommersant daily reported on September 23 citing the representatives of the fund. The growing market for berries and vegetables is becoming more attractive with recent cut of the VAT in the segment to 10%. Reportedly A1 plans to invest RUB1bn in the company to make it one of the leading companies in the sector. The market is growing at 5- 10% annually and is scattered among fragmented regional players. Imported frozen vegetables dominate Russian market with about 60% share, with deficit of quality local produce, while the demand in Russia for healthy lifestyle products and food is growing. RusBioAlians was founded in 2017 and produces frozen berries, jams, frozen vegetables and mushrooms under several brands. The amount of the deal was not disclosed, but the analysts surveyed by Kommersant valued the company at RUB8bn ($125mn). As reported by bne IntelliNews, Bonduelle-Belgorod, one of the subsidiaries of French food major Bonduelle in Russia, acquired the assets of the Shebekinsky vegetable factory. It will serve as a basis for localisation of
99 RUSSIA Country Report October 2019 ww.intellinews.com