×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

TPG Takes Control of Retailer Lenta, Ends Saga

U.S. private equity firm TPG has secured control of Russian retailer Lenta, ending a long-running corporate dispute with founder August Meyer, sources said Tuesday.

TPG, Russian bank VTB Capital and the European Bank for Reconstruction and Development together acquired 44 percent of Lenta for $1.1 billion, buying 40.6 percent from Meyer and about 3 percent from his business partners, said three sources close to the deal.

A financial market source said TPG increased its stake to more than 50 percent as a result of the deal. Together with VTB Capital, it now owns 65 percent of Lenta, while the EBRD saw its stake rise to 20 percent from 11 percent.

The TPG/VTB Capital alliance had held 30.8 percent of Lenta prior to the deal.

"The agreement has been signed; the company is valued at $2.6 billion," said one of the sources close to the deal.

Lenta, which had been touted as a possible takeover target for Wal-Mart and Carrefour, has been at the center of a shareholder dispute over strategy that even sparked a fistfight at its headquarters last September when the owners clashed over who should serve as chief executive.

Lenta, which generated nearly $2.5 billion in sales last year, has 39 hypermarkets, of which 14 are in St. Petersburg.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more