The owner of retail chain Sedmoy Continent was allowed to take complete control over the company

The Moscow Arbitration Court invalidated the prohibition of the Federal Financial Markets Service (FFMS) issued to company Pakva in respect of the purchase of securities of the trading network “The Seventh Continent”. It was reported by RAPSI referring to a representative of the court.

In November 2011, the Federal Antimonopoly Service approved the petition of Pakva company to acquire 100 percent of shares of “The Seventh Continent”. The largest owner of securities of the trading network is Alexander Zanadvorov, and according to the media, he also controls the Cyprus company Pakva.

In spring of 2012, the Cyprus entities belonging to Zanadvorov consolidated the 96.25 percent of “The Seventh Continent” shares. Meanwhile, the majority of the shares were sold to Pakva by the companies controlled by the businessman. In May Pakva filed an offer for a compulsory redemption of the remaining 3.75 per cent of the securities from minority shareholders at $100 per share.

Soon after that the FFMS prohibited to Pakva to buy 3.75 percent of shares of “The Seventh Continent”. In response to that, the structures of Zanadvorov went to the arbitration court while continuing to buy up the securities of the trading network. In August, it was reported that the businessman had taken control of all 100% of the shares of “The Seventh Continent”.

It was announced on November the 15th that the Association for the Protection of Investor Rights was going to go to court because it considered the compulsory acquisition of securities from minority shareholders illegal.

“The Seventh Continent” is the eighth-largest grocery retailer in Russia, taking up about 0.6 percent of the market. The company owns 146 retail outlets, including the same-called stores and 11 hypermarkets “Nash”. In 2011, the revenue of distribution network was 50.9 billion rubles.

Source: www.fruitnews.ru

Sedmoy Kontinent reported sales growth in HY1 2011

Grocery chain Sedmoy Kontinent (Seventh Continent) has reported strong growth in profit and sales for the first half of the year, helped by continued expansion.
For the January-June period, net profit more than tripled to 2.03 bn roubles (€48.5m), from 668.9 m roubles last year, while revenue jumped up 23.4% to 24.19bn roubles (€578m).

The company attributed the growth in sales to the addition of new outlets as well as “the improving welfare of the country’s population, and the Moscow administration’s policy for developing civilized food trade instead of product markets”. Profits were helped by lower commodity costs and a better pricing policy, as well as savings on labour expenses.

Source: www.freshplaza.com