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Auchan Group negotiates "Ramstor" purchase
Past week the developing company Enka Insaat consolidated 100% of Ramenka company, which manages "Ramstor" trade chain. The company purchased the share of its partner Migros company, Turkish retailer, "Vedomosti" inform.
Two days later, past Friday the official notice of Enka company appeared on the website of Istanbul Stock Exchange; it told about the involvement of French banking group Societe Generale to the sales of Ramenka retail business. "Enka company signed the mandate about the appointment of the investment block of the banking group to provide consulting services of the sale of Ramenka retail business", Mrs. Lora Sholk, the Press Service Specialist of Societe Generale Corporate & Investment Bank confirmed this information in her interview to "Vedomosti". Russian representative office of Enka and Home Office in Turkey made no comments.
Cooperating with Enka, the developer says that the bargain item will also be the right to manage the trade centers, in addition to the retail business (supermarkets, agreements with the suppliers, leasing rights, etc.) Enka will leave premises at its own disposal. At the present moment Ramenka includes 10 own trade centers in Moscow and Podmoskovje, and 42 leased supermarkets in 11 cities. According to Migros report of the first quarter 2007, in that period of time Ramenka managed more than 155,000 sq. m. of trading floor. The same report informs that the profits gained due to the lease of the trading floor in trade centers represented 10.4% of the total sales volume, performed by Ramenka (this figure valued to $598.7 mln. in 2006). As early as in June Enka notified its investors about the possibility of the partnership changes in Ramenka business. "In connection of the intention of Koc Holding to leave the retail the structure of Ramenka company may be changed in view of the retail trade and the management of its trade centers", the financial report of Enka company, dated June 30th, informs.
The interviewee of "Vedomosti" cooperates with Enka; he says that French Auchan Group is interested to purchase Ramstor chain; this company develops "Auchan" hypermarkets and "Atac" supermarkets in Russia. Auchan's top manager in Russia confirmed that the company participated in the negotiations on "Ramstor" purchase. Still, they have not been ready to forecast the results of the negotiations yet. Russian Х5 Retail Group and "Mosmart", French-Turkish Joint Enterprise Carrefour-Sabanchi, American Wal-Mart are mentioned as the other interested parties to purchase "Ramstor". Х5, Carrefour and Wal-Mart also made no comments. One of "Mosmart" top managers specified that the representatives of the investment foundations Eastern Property Holdings and ENR Russia Invest (they own around 25% of "Mosmart") are trying to negotiate "Ramstor" purchase.
Enka's choice for French consultants does not necessarily mean that French investor purchases "Ramstor". Maxim Arefyev, the Executive Director of Invest Banking Department, "Troyka Dialog", observed: "the most rapid and the most generous will win". Enka paid $542.5 mln. for 50% Migros' share in Ramenka joint enterprise. According to estimations done by Alexey Krivoshapko, the Analyst of Deutsche Bank, Enka may earn minimum $600 mln. for the resold share. He estimated the total value of Ramenka company with the account to real estate objects worth to $1.4 billion.