Will they sell ok. X5 Retail Group will buy O'Key supermarkets

X5 Retail Group is going to acquire the supermarkets of the Okay group. A corresponding petition has already been filed with the antimonopoly service. "OK" is more logical to focus on the development of hypermarkets and discounters, experts say
The Federal Antimonopoly Service received a petition from Kelvin Limited (Kelwin Limited) to obtain prior consent to acquire a stake in an unnamed company engaged in " retail predominantly food products, including beverages and tobacco products.
Kelvin Limited is part of the structure of Russia's largest retailer, X5 Retail Group (which develops the Pyaterochka, Perekrestok and Karusel chains), a company representative said earlier: on behalf of this company, X5 Retail Group filed applications for the purchase of regional chains.
As a source familiar with the situation explained to RBC, we are talking about the intention of X5 Retail Group to acquire the Okey supermarket chain, owned by the group of companies of the same name. At the time of publication, the press services of X5 Retail Group and OK did not respond to RBC's request. However, after X5's request, Retail Group announced on the London Stock Exchange that it had filed a corresponding application with the FAS. Later, Okay made a similar disclosure on the stock exchange.
As of October 27, 2017, the Okay group included 37 supermarkets and 72 hypermarkets under the Okay brand, as well as the Da! from 60 stores. At the end of 2016, the group was the seventh largest food retailer in terms of revenue after X5 Retail Group, Magnit, Dixy, Lenta and Metro Cash& Carry, according to RBC Market Research.
The bulk of Okay's revenue is provided by hyper- and supermarkets, which form one division. For the nine months of this year, the revenue of the two formats amounted to 118.2 billion rubles, discounters "Yes!" - only 7.2 billion rubles. But the business of discounters in January-September almost doubled, while the income of hyper- and supermarkets decreased by 0.9%. Comparable sales of these two formats for the nine months decreased by 3.7%, but discounters increased by 62%.
But yes!" until it generates operating profit for the group. According to the results of the first half of 2017 (latest available data), discounters had negative EBITDA. In hyper- and supermarkets, the profitability for this indicator reaches 5.6%.
In early October, O'Key specified in a presentation to investors that in the first half of the year, supermarkets accounted for 10% of the retailer's total revenue. The total sales area of this format is 47.6 thousand square meters. m, which is 8% of the retail space of all formats of the group. The retailer owns 18 thousand square meters. m of retail space for supermarkets.
For the supermarket segment, this deal will be large, it is comparable to the recent deal to lease a number of federal supermarket chains "The Seventh Continent," says CEO "INFOLine-Analytics" Mikhail Burmistrov. According to him, the value of the O'Key operating business, which includes 37 supermarkets, whose revenue for the nine months of 2017 amounted to just under 13 billion rubles, can be up to 4 billion rubles, even up to 4 billion rubles. may be worth the property owned by Okay. Depending on the configuration of the transaction, the price of "OK" can vary from 4 billion to 8 billion rubles. (from $68.7 million to $137.3 million at the current exchange rate), he believes.
The main owners of Okay are the founders of the group Dmitry Korzhev and Dmitry Trotsky (each indirectly owns, as of December 31, 2016, 23.49% each authorized capital), as well as their partner Boris Volchek (28.02%).
The owners of the O'Key retailer plan to sell their stake in the network, Vedomosti reported in December 2016, citing sources familiar with the negotiators. Among the possible buyers with whom negotiations were then held, Auchan and Lenta were called. Shareholders of "Okay" expected to earn 110 billion rubles for the company. ($ 1.8–2 billion), Delovoy Petersburg claimed in January 2017, naming Magnit, X5 Retail Group and Auchan among the applicants.
At the end of the trading day on Tuesday, October 31, the capitalization of "OK" on the London Stock Exchange was $ 645.8 million. At the end of the day on Wednesday, November 1, the capitalization of "OK" increased after the announcement of the deal by 8.3 %, to $699.6 million.
In March 2017, Miodrag Borojevic was appointed as the new CEO of Okay hyper- and supermarkets. RBC's source then suggested that discounters could be spun off into separate business, for the development of which the option of attracting an investor is also not excluded.
Having already announced the sale of supermarkets, O'Key announced that it would focus on the development of hypermarkets and discount stores. For Okay, it is logical to abandon the supermarket business, since it has never been strategic for the group, Burmistrov believes, adding that now the company needs money to open new discounters and renovate hypermarkets (including the implementation of projects to lease part of the space to the network "Surname").
X5 Retail Group in the fourth quarter of 2016 regained the title of the largest Russian retailer by revenue. For the nine months of this year, X5's revenue grew by 26.2%, to 933.3 billion rubles. Like-for-like sales increased 6.1% over the period.
The capitalization of X5 Retail Group on Tuesday, October 31, on the London Stock Exchange reached $ 11.1 billion, at the end of the day on November 1, it did not change.

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Issuance of the O'KEY card free of charge within 10 days

Action organizer:

O`KEY LLC (OGRN 1027810304950); promotion period: from 04/13/2015 to 08/12/2015

Terms of action:

Provision of a discount of 10% of the amount of the check to holders of O`KEY regular customer cards (hereinafter referred to as the "O`KEY card"). The discount does not apply to tobacco products, as well as to alcoholic products if the cost of the goods, taking into account the discount, is below the minimum retail prices, established by law. The discount is not summed up with other discounts, if there are two or more discounts for the same product, the largest one is applied;
The cost of the O'KEY card is 55 rubles. The number of O'KEY cards is limited. The promotion is valid subject to availability of OK cards. The organizer of the promotion has the right to terminate the promotion before the expiration date.

Location of the action:

Hypermarket O`KEY in Cherepovets, st. Raahe, 2.

Rules for the sale of goods using a gift coupon for the O'KEY chain of stores.

1. The OK'KEY gift voucher is a paper voucher of a fixed denomination with an individual number corresponding to the date of its issue and several degrees of protection.

2. O'KEY gift vouchers are purchased and used when purchasing goods in the O'KEY hypermarkets and supermarkets.

3. A gift voucher confirms that its purchaser has made an advance payment towards the forthcoming purchase of goods. The fact of purchasing a gift coupon is the conclusion of a preliminary contract and confirms the intention of the owner of the gift coupon to conclude in the future the main contract for the retail sale of goods by purchasing any goods in the O'KEY hypermarkets and supermarkets, which is confirmed by the issuance of a cash receipt to the buyer.

4. Gift certificate purchasers can be both individuals and legal entities.

5. Gift voucher holders are only individuals.

6. The gift voucher is freely transferable to any person and is presentable. A contract for the retail purchase and sale of goods using a gift voucher as a means of payment can be concluded by any person who is a holder of a gift voucher.

7. A gift voucher gives its owner the right to a one-time purchase of any number of goods in the O’KEY hypermarket and supermarket chain for total amount equivalent to the value of the gift voucher printed on the front of the voucher.

8. The amount of funds contributed by the owner of the gift voucher as an advance payment corresponds to the face value of the gift voucher. The specified amount of face value is used by the buyer when purchasing the goods at a time and in full, after which the gift coupon is considered redeemed and remains with the seller.

9. The gift voucher is non-refundable and cannot be exchanged for cash or another gift voucher.

10. When purchasing goods for an amount less than the face value indicated on the front side of the gift voucher, the balance of funds will not be returned to the buyer.

11. When purchasing goods for an amount greater than the face value indicated on the front side of the gift coupon, the buyer pays the difference in cash or by bank transfer, including using payment bank cards.

12. The gift voucher is valid only for the purchase of goods in the O'KEY hypermarkets and supermarkets.

13. The gift voucher has a limited expiration date, which is indicated on the front side of the coupon, or, if the expiration date is not indicated, - 3 years from the date of activation of the coupon.

14. Upon expiration of its validity period, the gift voucher cannot be used to pay for goods in the O'KEY hypermarkets and supermarkets, the funds used to purchase the gift voucher are not returned.

15. Gift voucher purchased legal entity, is activated on the date of signing the agreement on the sale of the coupon (s) by affixing a seal, the signature of an authorized person and entering information about the sale into the coupon activation database. Gift voucher purchased individual, is activated on the date of its purchase by affixing a seal, signature of an authorized person and entering information about the sale into the database of activated coupons.

16. The gift voucher is invalid without the seal and signature of authorized persons of the O'KEY hypermarket and supermarket chain. When purchasing a gift voucher, the purchaser is obliged to check the proper activation of the voucher.

17. Gift vouchers that are damaged and do not allow their identification in the database of activated cards, or gift vouchers, the authenticity of which the seller's representatives have doubts, are not accepted for payment for goods.

18. Warranty service, exchange and return of low-quality goods purchased using a gift coupon is carried out in accordance with the general procedure provided for by the current legislation of the Russian Federation.

19. In case of loss, damage or theft, the gift voucher is not restored and its value is not compensated.

20. The rules for the use of gift coupons can be supplemented and / or changed by the Issuing Company unilaterally. Information about this will be posted on the website in a timely manner.

Rules for the sale of goods using gift card network of stores "O" KEY.

1. The O'KEY gift card is a fixed denomination plastic card with a magnetic stripe and a barcode.

2. O'KEY gift cards are purchased and used when purchasing goods in the O'KEY hypermarkets and supermarkets.

3. A gift card confirms that its purchaser has made an advance payment towards the forthcoming purchase of goods. The fact of purchasing a gift card is the conclusion of a preliminary agreement and confirms the intention of the gift card holder to conclude in the future the main contract for the retail sale of goods by purchasing any goods in the O'KEY hypermarkets and supermarkets, which is confirmed by the issuance of a cash receipt to the buyer.

4. Gift card purchasers can be both individuals and legal entities.

5. Gift card holders are only individuals.

6. The gift card is freely transferable to any person and is bearer. Treaty retail purchase and sale goods using a gift card as a means of payment can be concluded by any person who is a gift card holder.

7. A gift card entitles its owner to a one-time purchase of any number of goods in the O’KEY hypermarkets and supermarkets for a total amount equivalent to the face value of the gift card indicated on its front side.

8. The amount of funds contributed by the owner of the gift card as an advance payment corresponds to the face value of the gift card. The indicated amount of face value is used by the buyer when purchasing the goods at a time and in full, after which the gift card is considered redeemed and remains with the seller.

9. The gift card cannot be returned or exchanged for cash or another gift card.

10. When purchasing goods for an amount less than the face value indicated on the front side of the gift card, the balance of funds will not be returned to the buyer.

11. When purchasing goods for an amount greater than the face value indicated on the front side of the gift card, the buyer pays the difference in cash or by bank transfer, including using payment bank cards.

12. The gift card is valid only for the purchase of goods in the O'KEY hypermarkets and supermarkets.

13. The gift card has a limited expiration date, which is printed on the front of the card.

14. Upon expiration of its validity period, the gift card cannot be used to pay for goods in the O'KEY hypermarkets and supermarkets, the funds used to purchase the gift card are not returned.

15. The gift card has its own individual number corresponding to the date of its issue, and several degrees of protection. A gift card purchased by a legal entity is activated on the date of signing the card sale agreement by entering information about the sale into the card activation database. A gift card purchased by an individual is activated on the date of its purchase by entering information about the sale into the database of activated cards.

16. An inactivated gift card is invalid. When purchasing a gift card, the purchaser is obliged to check the proper activation of the card.

17. Gift cards with damage that do not allow their identification in the database of activated cards, or gift cards the authenticity of which the seller's representatives have doubts, are not accepted for payment for goods.

18. Warranty service, exchange and return of low-quality goods purchased using a gift card is carried out in accordance with the general procedure provided for by the current legislation of the Russian Federation.

19. In case of loss, damage or theft, the gift card is not restored and its value is not compensated.

20. The rules for the use of gift cards can be supplemented and / or changed by the Issuing Company unilaterally. Information about this will be posted on the website in a timely manner.

21. These rules take precedence over the summary rules set out by the gift card holder in the event of a dispute.

O'KEY Group agreed with X5 RETAIL GROUP on the sale of the supermarket business

O'KEY Group S.A. (LSE: OKEY, the “Group”), one of the largest food chains in Russia, and X5 Retail Group (hereinafter referred to as X5), one of the leading multi-format retail companies Russia, they report that they have reached an agreement on the acquisition of X5's supermarket business, which currently operate under the O'KEY brand. The Federal Antimonopoly Service of Russia approved the relevant application.

All materials published by the Company are available on its website at www.okeyinvestors.ru.

The perimeter of the transaction will include a business consisting of 32 supermarkets, 18 of which are located in St. Petersburg, 4 - in Moscow, 2 - in Volgograd, as well as one each - in Moscow and Leningrad regions, in Astrakhan, Voronezh, Lipetsk, Tolyatti, Krasnodar and Novocherkassk. According to the agreements, the deal also includes real estate objects (supermarket buildings) owned by the O’KEY group of companies: 14 locations (13 in St. Petersburg and 1 in Moscow). All stores are planned to be integrated into trading network"Crossroads".

X5 is legally advised by White & Case, and O'KEY is being advised by Herbert Smith Freehills.

Miodrag Boroyevich, General Director of O'KEY Group of Companies, noted:“We are delighted that we have been able to conclude an agreement with X5 Retail Group to sell our supermarket business. The restructure of the company as a result of the transaction will allow us to focus on the main strategic priorities of our business – improving the efficiency of compact urban hypermarkets and accelerating the growth of the discounter business.”

Main Executive Director X5 Retail Group Igor Shekhterman commented:“The deal is fully in line with our strategy to strengthen Perekrestok's position as the leading supermarket chain in Russia. While focusing on the organic development of X5's business, we also use other opportunities to secure high-quality locations in strategically important regions.”

Issuance of the O'KEY card free of charge within 10 days

Action organizer:

O`KEY LLC (OGRN 1027810304950); promotion period: from 04/13/2015 to 08/12/2015

Terms of action:

Provision of a discount of 10% of the amount of the check to holders of O`KEY regular customer cards (hereinafter referred to as the "O`KEY card"). The discount does not apply to tobacco products, as well as to alcoholic products, if the cost of the goods, taking into account the discount, is lower than the minimum retail prices established by law. The discount is not summed up with other discounts, if there are two or more discounts for the same product, the largest one is applied;
The cost of the O'KEY card is 55 rubles. The number of O'KEY cards is limited. The promotion is valid subject to availability of OK cards. The organizer of the promotion has the right to terminate the promotion before the expiration date.

Location of the action:

Hypermarket O`KEY in Cherepovets, st. Raahe, 2.

Rules for the sale of goods using a gift coupon for the O'KEY chain of stores.

1. The OK'KEY gift voucher is a paper voucher of a fixed denomination with an individual number corresponding to the date of its issue and several degrees of protection.

2. O'KEY gift vouchers are purchased and used when purchasing goods in the O'KEY hypermarkets and supermarkets.

4. Gift certificate purchasers can be both individuals and legal entities.

5. Gift voucher holders are only individuals.

7. A gift voucher entitles its owner to a one-time purchase of any number of goods in the O'KEY hypermarkets and supermarkets for a total amount equivalent to the face value of the gift voucher indicated on its front side.

9. The gift voucher is non-refundable and cannot be exchanged for cash or another gift voucher.

10. When purchasing goods for an amount less than the face value indicated on the front side of the gift voucher, the balance of funds will not be returned to the buyer.

12. The gift voucher is valid only for the purchase of goods in the O'KEY hypermarkets and supermarkets.

15. A gift coupon purchased by a legal entity is activated on the date of signing the agreement on the sale of the coupon (s) by affixing a seal, signing an authorized person and entering information about the sale into the coupon activation database. A gift coupon purchased by an individual is activated on the date of its purchase by affixing a seal, signature of an authorized person and entering information about the sale into the database of activated coupons.

19. In case of loss, damage or theft, the gift voucher is not restored and its value is not compensated.

20. The rules for the use of gift coupons can be supplemented and / or changed by the Issuing Company unilaterally. Information about this will be posted on the website in a timely manner.

Rules for the sale of goods using a gift card from the O'KEY chain of stores.

1. The O'KEY gift card is a fixed denomination plastic card with a magnetic stripe and a barcode.

2. O'KEY gift cards are purchased and used when purchasing goods in the O'KEY hypermarkets and supermarkets.

4. Gift card purchasers can be both individuals and legal entities.

5. Gift card holders are only individuals.

6. The gift card is freely transferable to any person and is bearer. A contract for the retail purchase and sale of goods using a gift card as a means of payment can be concluded by any person who is a gift card holder.