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.