Russia’s second largest mobile device retailer Svyaznoy is considering selling between 20 and 30% of its shares in a private equity deal, Russian business daily Kommersant reported. Maxim Nogotkov, the company’s main shareholder, confirmed that Deutsche Bank and Raiffeisenbank received a mandate to find an investor, but declined to disclose the value of their proposed stake.
Kommersant quoted an unnamed source as saying that the offer had been presented to a number of Russian and foreign investment funds, including VTB Capital, since late 2011.
Svyaznoy’s retail network includes 2,734 outlets in Russia, in addition to a thriving online retail business. The company also operates a bank, named Svyaznoy Bank, and plans to launch telephony services this year. In 2011, the company generated an estimated turnover of $2.307 billion, up from $1.856 billion in 2010. That year, the company’s turnover grew 63%, while its net profit increased tenfold and its EBITDA more than tripled, reaching $140 million.
Although it announced last year that it may go public in 2012, Svyaznoy now seems to favor a different financial strategy, which may include issuing bonds and loans, as well as private investment, said the company’s General Manager Denis Lyudkovsky in a recent exchange with Kommersant.
Svyaznoy’s main competitor, Euroset, had to postpone its IPO on the London Stock Exchange in April, revealing a lack of sufficient interest from investors.
