Euroset purchase by businessman Alexander Mamut, on the photo, was officially announced September 22, 2008.
Photo: Sergey Kiselev
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Alexander Mamut Bought Euroset for $1.25bn
Euroset purchase by businessman Alexander Mamut was officially announced yesterday. This acquisition is likely to set into motion a string of deals with cellular retailers, which are eager to withdraw from the market despite that its worth may reach $9 billion this year.
Engeny Chichvarkin and Timur Artemiev that co-owned Russia’s biggest retailer Euroset sold 50 percent each to the ANN investment company of Alexander Mamut. According to the sources close to the deal, Euroset (that unites over 5,000 outlets and which 2007 revenues stood at $3.6 billion) cost $1.25 billion with the liabilities of roughly $850 million taken into account.
“I will continue selling cellular phones and remain in Euroset as the BOD chairman,” Chichvarkin told Kommersant without specifying the projects, in which he will inject the received money. As to Artemiev, he will leave the company as soon as the deal is closed, investing his portion “in research, biotechnology and development of anti-aging medicine.”
The analysts say the further scenario for Euroset depends on whether Mamut has acquired the company for himself or acted as a financial investor, which he did for Carbina Telecom. Mamut bought that company in partnership with Viktor Vekselberg in 2005 and sold it to Golden Telecom and VimpelCom in the next effort.
As to Euroset, Mamut said yesterday he bought it for his own money.
The deal with Euroset is the sign for all market, said Kirill Dmitriev, a partner at Icon Private Equity. “In today’s market environment, the companies are to urgently refinance the debt burden,” he explained.
www.kommerdant.com
All the Article in Russian as of Sep. 23, 2008
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