MOSCOW (Reuters) - Russia's largest children's toy retailer Detsky Mir said on Wednesday it had completed its transformation into a private business, ending a months-long buyback programme that has funnelled some returns to Western investors.
Detsky Mir, whose free float had exceeded 50% and counted a host of Western funds and banks among its shareholders, said last November that it was planning a gradual transformation into a private company, citing the need to maintain stable business operations.
Detsky Mir subsidiary JSC DMFA consolidated 58.26% of the company's voting shares, including those owned by its affiliates, based on the results of Detsky Mir's share repurchase programmes announced in May 2023, the company said.
"JSC DMFA will send a public offer to shareholders of Detsky Mir to repurchase shares with the potential size of the offer up to 100% of the remaining outstanding shares," the company said in a statement.
Non-resident investors from so-called unfriendly countries, those that have imposed sanctions against Russia over its invasion of Ukraine, were entitled to sell shares at 71.5 roubles ($0.7416) per share into type-C accounts, access to which is blocked unless Russia grants waivers.
Alternatively, investors from unfriendly countries could bypass type-C accounts if selling at 60.77 roubles per share.
Those terms were approved by Russia's government commission that monitors foreign investment. Moscow already demands a 50% discount on all foreign deals after consultants selected by the Russian government have valued assets for sale, and restrictions are getting tighter.
Retailer Magnit last week completed a $507 million buyback of blocked shares from Western investors at a 50% discount, another template that companies may seek to follow and could offer investors a way to extract some funds from Russia.
Russia's presidential office is currently reviewing a request from oil major Lukoil to buy back up to 25% of its shares from foreign investors.
($1 = 96.4175 roubles)