September 9, 2014 Russia-China Investment Fund (RKIF) has reached an agreement in principle to invest in the company, “Children’s World”, is a major player in the sector of specialized network of trade in goods for children in Russia. To date, 100% of the share capital of the company is controlled by AFK “System”.
Under the deal, a large part of the proceeds will be directed to further development, in particular, the opening of new stores and the construction of additional logistics centers, which will significantly improve the operational efficiency of the company, which has the largest network of children’s goods in Russia. Investments RKIF support the development of the network, providing modern formats and channels of sales of children’s products in the Russian regions.
Kirill Dmitriev, CEO RKIF, said:
“We are delighted to be able to invest in a unique company,” Children’s World “, which combines a leading position in the market with the dynamic development – about a third of stores were opened in the last two years. Our investment will help the company to improve efficiency and support to improve the demographic situation in the country by offering high-quality children’s products at affordable prices. Investments will also contribute to the development of production, logistics and transport sectors of Russia and China. “
Shamolin, President of AFK “Sistema”, commented:
“We are pleased to announce the cooperation with the Russian-Chinese investment fund and we believe that this is an important step for AFK” System “in expanding its partnerships in Asia. AFK “System” has extensive experience in the development of companies and the creation of these market leaders.
“Children’s World” – a fast growing company with excellent growth prospects and a talented management team. Additional investments will support the development of a network RKIF “Children’s World” in Russia and will further increase the cost of business. ”
Children’s World – a leading chain of stores for children’s products (market share in 2013 was 18%). 265 stores are located in 98 cities of Russia and 4 cities of Kazakhstan. Takes 1st place in the brand awareness in the sector of the network of trade in goods for children (awareness – 98%). Brand “Children’s World” has existed in Russia for more than 50 years.
Russia-China Investment Fund (RKIF) is a private equity fund that invests in unique opportunities that have arisen as a result of the rapid development of economic cooperation, dynamic trade and increase the purchasing power of the middle class in Russia, China and the CIS countries. Created by the Russian Direct Investment Fund and China Investment Corporation. RKIF focuses on cross-border transactions, as well as investments in various sectors of the economy in the region in order to promote structural reforms and improve the efficiency of the economies of Russia and China.
Russian Direct Investment Fund (RDIF) was founded in June 2011 with a view to the implementation of equity investments primarily in Russia in cooperation with leading international financial and strategic investors. The Foundation acts as a catalyst for direct investment in the Russian economy. Fund management company located in Moscow and is a 100% subsidiary of Vnesheconombank.
AFK “System” – the largest in Russia and the CIS diversified public holding company, serving more than 100 million customers in industries such as telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. The company was founded in 1993 in the second quarter 2014 reported revenues of US $ 8,8 billion total assets as of June 30, 2014 amounted to US $ 45,2 Bln. Global depositary receipts AFK “System” are traded under the symbol “SSA” on the London Stock Exchange. Company’s ordinary shares were admitted to trading under the symbol «AFKS» on the Moscow Stock Exchange. AFK “System” takes place 308 in the Fortune Global 500 by the end of 2013.
Source – preqveca.ru
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