Raiffeisenbank acted as the exclusive financial advisor on sale of Concept Group equity stake to AFK «Sistema» (LSE: SSA). The deal terms entail a sale of 40% equity stake in a holding company that owns Concept Group, a leading player in the Russian women’s and children’s fashion market operating under Concept Club and Acoola brands.
The transaction value is around 1,0 billion rubles. According to the binding agreement, Sistema has a right to increase its shareholding in Concept Group to a controlling stake within three years.
Dimitri Aleevski, Managing Director, Head of M&A and Equity Capital Markets, ZAO Raiffeisenbank, said: «Consumer sector as a whole is one of a few segments of the Russian economy that demonstrates sustainable growth despite challenging economic environment. Concept Group has a fully-integrated business-model, diversified sales channels and demonstrates excellent financial performance. We are pleased with the results of the deal that, in our view, will help the company significantly strengthen its market position in the short term considering the experience and financial capabilities of the new partner.
Leonid Khanik, Concept Group shareholder commented: «Concept Group’s development strategy implies rather aggressive expansion of all the company’s brands in different markets. Partnering with such a strong and capable player as Sistema corresponds to our joint long term goal to build value. It took us a lot of time and effort to successfully close this transaction, and we are very pleased with the quality of work and overall contribution of Raiffeisenbank team».
Founded in 2004, Concept Group creates collections and sells women’s clothes, accessories, lingerie and children’s clothes via its own stores, franchises, online and wholesale platforms. It operates under the Concept Club, Bestia, Infinity Lingerie and Acoola brands. As at the end of 2013, Concept Group’s retail chain comprised 287 stores in 103 towns and cities across Russia with average store area of 100-250 sq.m. In 2013, Concept Group’s revenue exceeded RUB 5 billion, demonstrating increase of nearly 40% in comparison with its revenues in 2012.
Investment banking division of Raiffeisenbank in Russia has an extensive expertise in mergers and acquisitions and equity capital markets and provides a full range of services in this area. The opportunities of Raiffeisen Group in Russia and around the world, the unique knowledge of Russian companies and long-term relationship with its shareholders allow to hold leading positions in consumer goods and retail sector, metals and mining, as well as in transport and chemical industries. Investment banking team of Raiffeisen Group has long-standing international experience of closed transactions in Central and Eastern Europe and Turkey.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG. Raiffeisenbank ranks 12th among the Russian banks in terms of assets, based on H1 2014 results (Interfax-CEA). According to the same Interfax-CEA data, ZAO Raiffeisenbank ranked 6th in terms of liabilities of individuals and 10th with regard to consumer lending.
Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 15 markets. RBI is the only Austrian bank with a presence in both the world’s financial centres and in Asia, the group’s further geographical area of focus. In total, more than 56,000 employees service 14.6 million customers through more than 2,900 business outlets, the great majority of which are located in CEE. Raiffeisen Bank International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB). RZB indirectly holds around 60.7 per cent of the shares, the rest account for the free float. RBI’s shares are listed on the Vienna Stock Exchange. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the group head office of the entire RZB Group, including RBI.