M.video announced the signing of an agreement to sell their entire interest in PJSC M.video to Safmar Group
OREANDA-NEWS. Alexander Tynkovan, the founder, President and CEO of M.video (MOEX: MVID), Russia's largest consumer electronics retailer, ("the Company") and his partners Pavel Breev and Mikhail Tynkovan, today announce the signing of an agreement to sell their entire interest in PJSC M.video to Safmar Group. Under the agreement, Safmar Group will acquire 100% of shares in an investment company owned by Alexander Tynkovan and his business partners. The investment company in turn owns 57.7% of M.video.
The agreement ensures fair and equal treatment of all M.video shareholders, as it includes as a mandatory condition to completion of the transaction a voluntary tender offer to be made by Safmar Group to all minority shareholders of M.video to acquire their shares (the "Voluntary Tender Offer") at the same acquisition price as that paid to Alexander Tynkovan and his business partners. The Voluntary Tender Offer will be secured by a bank guarantee, in compliance with applicable legislation.
Completion of the transaction is subject to all necessary regulatory approvals being obtained.
The M.video management team will remain fully engaged in the operational management of the Company both before and after the transaction closes. Alexander Tynkovan and Pavel Breev will also provide all necessary support following completion of the transaction, in order to ensure a seamless transition and continued growth to benefit shareholders, partners, employees and customers alike.
M.video has built one of the best corporate governance systems in Russia, and has an experienced and strong management team led by Enrique Fernandez, CEO of M.video Management LLC, which will ensure operational continuity throughout the transition period and thereafter.
Alexander Tynkovan said: "In the more than 20 years since I founded M.video, our Company has transformed from a small shop into the largest company in its sector. But what is more important is that we have created a highly efficient management system that will drive M.video's sustainable growth in future. The Company is ready to achieve new and ambitious goals, and fresh investment from the new shareholder will help take it to the next level. I am a strong believer in the future of the new Company and will be pleased to support the management and new shareholders after the transaction completes."
BIN Group (Safmar) founder Mikhail Gutseriev said: "M.video is one of the outstanding companies in its field, and we see it as the base for Safmar Group to expand its business in the non-food retail sector. We look forward to working with M.video's professional management team, and to benefiting from its experience and expertise. I would also like to express my appreciation to Alexander Tynkovan and Pavel Breev for their support and readiness to work with us after the transaction closes."
About the sellers
Alexander Tynkovan, member of the Board of Directors, President and CEO of M.video
Alexander Tynkovan was born on 14 June 1967. In 1992 he graduated from Moscow Energy Institute. He founded M.video together with partners in 1993 and has serves as the Company's President and CEO ever since. From 2008 to May 2015 he was a member of the Supervisory Board of X5 Retail Group N.V.
Pavel Breev, member of the Board of Directors, Vice-President of M.video
Pavel Breev was born on 22 April 1967. In 1986 he graduated from Moscow Aviation Engine College. He is a co-founder of M.video Group and has held various positions in management since 1993.
M.video is the largest Russian consumer electronic retail chain by revenue. The Company started its operations in 1993. M.video runs 390 brand name stores in 165 Russian cities as of November 21, 2016. The selling space of M.video stores amounts to 665,140 thousand sq. m. while the total space accounts to 884,334 thousand sq. m.
M.video offers its customers approximately 20,000 SKUs of audio/video, digital, small and large home appliances, media and entertainment products as well as accessories. M.video operates its stores under a uniform format and a specially designed store concept to provide customers with approximately 2,000 square meters of easy-to-navigate shopping space that also offers information about the products and upcoming trends.
In November 2007 OJSC "Company "M.video" became the first publicly traded company in the domestic consumer electronic retail sector. The Company's shares are traded on Moscow Exchange (ticker: MVID).