Russia-China investment fund buys stake in “Children’s World”

Russia-China Investme[t:tag slug=investfond]Investment Fund[/t:[t:tag slug=fond]Fund (RKIF established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation) reached “agreement in principle” to invest in the company, “Children’s World“, which belongs to AFK “Sistema”, said the fund.

Stake in the “Children’s World”, which can get RKIF not disclosed. AFC President Shamolin in late August during a conference call said that the “system” is in talks with investors to sell about 10% in the “Children’s World”.

According to the agreement with RKIF, most of the fund will be spent on further development of the network, in particular, the opening of new stores and the construction of additional logistic centers.

AFC President Shamolin called the agreement with RKIF important stage for “The System” in expanding its partnerships in Asia. AFK “Additional investments RKIF support the development of networks” Children’s World “in Russia and will further increase the cost of business,” - he said.

“Children’s World” was planning to hold an IPO in the spring of 2014, according to banking sources, but occupancy did not take place due to deteriorating market conditions. AFK “System”, according to its president, retains plans IPO “Children’s World” and waiting for the right conditions for accommodation.

The “Children’s World” brings together a network of similar stores for children, shops and luxury-ELC center “Gallery’s” Jakimanka. “At June 30, a chain of stores united 265 stores in Russia and Kazakhstan, the network was presented ELC 32 stores in Russia.

The management company of the group - OJSC “Detsky Mir” - belongs to AFK “Sistema”. Proceeds of “Children’s World” in the last year increased by 30.3%, to 36 billion rubles.

10 September 2014

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