PPF Group to obtain a controlling stake in Eldorado
02/05/2009
PPF Group, the international financial group, has signed a Memorandum of Understanding (MOU) with the Russian businessman, Mr Igor Yakovlev, for a joint venture relating to his extensive retail operations in Russia.
PPF Group simultaneously announces that it has also secured the approval of the Federal Antimonopoly Service of Russia to acquire an equity stake in Eldorado, Russia´s largest electronics and domestic appliances retailer.
The Memorandum of Understanding limits PPF Group´s stake in the joint venture to 50% plus 1 share. Subject to the formulation of the joint venture partnership, PPF Group plans to convert a significant part of its outstanding loan, previously provided to Eldorado, into equity. The conversion to equity will further strengthen the Eldorado’s balance sheet and assist in successfully addressing the recent challenges brought about by the financial crisis.
PPF Group simultaneously announces that it has also secured the approval of the Federal Antimonopoly Service of Russia to acquire an equity stake in Eldorado, Russia´s largest electronics and domestic appliances retailer.
The Memorandum of Understanding limits PPF Group´s stake in the joint venture to 50% plus 1 share. Subject to the formulation of the joint venture partnership, PPF Group plans to convert a significant part of its outstanding loan, previously provided to Eldorado, into equity. The conversion to equity will further strengthen the Eldorado’s balance sheet and assist in successfully addressing the recent challenges brought about by the financial crisis.