Wednesday, January 16, 2019

Sistema: Detsky Mir Stake Sale Cancelled

Posted by December 13, 2017

Russian business conglomerate Sistema said on Wednesday the offering of Detsky Mir shares had been cancelled, after its stake in the country's largest toy retailer was frozen by court at the request of Rosneft.

"Due to investor concerns triggered by hostile actions initiated by Rosneft and Bashneft resulting in court injunctions and arrest of all Sistema's shares in Detsky Mir, the previously announced offering can not be completed," it said in a statement.

Sistema said on Tuesday it had sold a 5 percent stake in Detsky Mir for around $56 million, as part of an accelerated offering of a 6.3 percent stake in conjunction with the Russia-China Investment Fund (RCIF), which sold 1.3 percent.

RCIF has taken a decision not to proceed with the share sale, the fund said in a separate statement on Wednesday.

Reporting by Denis Pinchuk and Katya Golubkova; writing by Maria Kiselyova

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