Page 113 - RusRPTApr19

however, partly attributed to the adoption of IFRS16 accounting standards.
The management of the company recommended distributing the entire RUB3.3bn of 4Q18 RAS net income as a dividend, implying a 5% dividend yield for the 4Q18 payment alone, Sberbank CIB wrote on March 4. BCS Global Markets also estimated that this payout would make a 5% dividend yield and a record-high DPS (dividend per share of) RUB4.47. "The company has one of the highest revenue growth rates in the sector and has been improving its operating efficiency. It announced healthy dividends and has superior ROIC. We reiterate our positive view on the stock," Sberbank CIB commented on Detsky Mir results and dividend proposal. Detsky Mir previously guided for at least 80 new store openings in 2019 and at least 300 new stores in 2019-22. In February 2019 Detsky Mir had also opened its first store in Belarus, where it aims to open 35 stores there in the medium term and gain 20% of the market in the long term. In December 7 the main owner of AFK Sistema Vladimir Yevtushenko confirmed negotiating the sale of Detsky Mir children’s goods retailer to Safmar Group of billionaire Mikhail Gutseriev. Previous reports claimed that Sistema could sell a controlling stake in Detsky Mir to the Safmar in a widely anticipated deal. The retailer recently added a second new format this year, which could increase the valuation of the asset. The SPO of the retailer in 2017 and March 2018 was scrapped due to legal battle between Russian oil major Rosneft and Sistema.
The iconic Russian children's goods chain Detsky Mir controlled by AFK Sistema multi-industry investment conglomerate could sell 25% stake to Sovcombank for RUB20bn ($305mn), Kommersant daily said on March 12 citing unnamed sources. Detsky Mir is one of the most attractive assets for sale in Sistema's portfolio. The SPO of the retailer in 2017 and March 2018 was scrapped due to legal battle between Russian oil major Rosneft and Sistema. After that, in December 2018 reports said the main owner of AFK Sistema Vladimir Yevtushenko negotiating the sale of Detsky Mir to Safmar Group of billionaire Mikhail Gutseriev. The price at which Sovcombank reportedly if offering dfor Detsky Mir would make a premium to market of about 20%, experts surveyed by Kommersant estimated. BCS Global Markets on March 12 estimated the same premium.
Sistema was previously keen on selling the whole 52.1% stake, but that would oblige the buyer to make an obligatory buyout offer to minority shareholders. "While negotiations regarding the sale of Sistema’s stake in Detsky Mir are ongoing, the news may support share price, as it confirms Sistema’s intention to sell on the best terms with a premium to the market share," BCS Global Markets commented on March 12. Detsky Mir guided for at least 80 new store openings in 2019 and at least 300 new stores in 2019-22. In February 2019 Detsky Mir had also opened its first store in Belarus, where it aims to open 35 stores there in the medium term and gain 20% of the market in the long term. The retailer posted 14% year-on-year growth in revenues in the 4Q18, supported by 89% y/y expansion of online sales that accounted for 8% of total top line. Detsky Mir showed 18% y/y Ebitda growth in the reporting quarter, with 2018 Ebitda doubling year-on-year, however, partly attributed to the adoption of IFRS16 accounting standards. The management of the company mentioned that it will recommend distributing the entire RUB3.3bn of 4Q18 RAS net income as a dividend, implying a 5% dividend yield for the 4Q18 payment alone, Sberbank CIB wrote on March 4. BCS Global Markets also estimated that this payout would make a 5% dividend yield and a record-high DPS (dividend per share of) RUB4.47. "The company has one of the highest revenue growth rates in the sector and has been improving its operating efficiency. It announced healthy dividends and has superior ROIC. We reiterate our positive view on the stock," Sberbank CIB commented on Detsky
113 RUSSIA Country Report April 2019 www.intellinews.com