Gutseriev's Eldorado: how the businessman creates the largest appliances retail chain

Safmar Group acquired 100% of Eldorado, one of the largest electronics and appliances retail chains. According to the information from the RBC sources, the asset will be combined with Tekhnosila chain, which is owned by the Gusteriev-Shishkhanov's group of companies.   
Origin source
Financial group "Safmar" bought out the Czech PPF Group N.V. EMMA Capital and 100% of one of the largest in Russia "Eldorado" household appliances and electronics chains, said on Friday, 9 December, participants in the transaction. According to the retailer, the deal has already been agreed with the Federal Antimonopoly Service (FAS). According to RBC, the approval took place in early October 2016. Then Service approved the petition Cyprus company Dawlaria Holdings Limited for the purchase of an unnamed company. But a month before the same offshore already appealed to the FAS with the same request to disclose the purchase and the name of the acquired asset - "Eldorado", but the application was sent back for revision. According to the extract from the Cyprus Registry, the owner of 40% stake Dawlaria is Mikhail Gutseriev, 15% owned by his nephew Mikail Shishkhanov and his brother Sait-Salam Gutseriev, even 10% - the son of Mikhail Gutseriev Said Bilan and Uzhakhovs. As explained on Friday, a source familiar with the transaction, it is the ultimate beneficiary of Mikhail Gutseriev.

Top management of the retailer will continue to work for a company listed in the message, "Eldorado", the words of the General Director Mikhail Nikitin company. According to him, "the deal was implemented in accordance with the development plan" network.

Terms of purchase sides refused to comment. Buying "Eldorado" Gutseriev could cost 26 billion rubles, taking into account the debt load retailer, estimates CEO «INFOLine-Analysts' Mikhail Burmistrov. For comparison, the Czech investors to pay for the network during its redemption from the founder of the "Eldorado" Igor Yakovlev more than $ 1 billion. The first 50% plus one share "Eldorado» PPF Group received in 2008 by converting the granted loan retailer, according to various estimates, at $ 300-500 million. The rest of the consortium of investors has already acquired a direct buy-out in 2011 for about $ 625-700 million.

Czech owners "Eldorado"

Since 2008, the "Eldorado" belonged to the Czech investment group PPF Group N.V., the beneficiary of which is Peter Kellner. Czech EMMA Capital businessman Jiri Šmejc acquired a stake in "Eldorado" in 2014. At the time of the transaction with "Safmarom» PPF owned 80% of the company, Emma Capital - 20%.

We remain PPF and other assets in Russia, in particular the Bank of Home Credit, which Czech investors own 88.62%, and the company PPF Real Estate Holding B.V. The latter owns in Russia a business center Comcity, two towers in the business center "Metropolis" (a joint project with the American Hines), a sports and wellness "Mitino Park" complex, shopping and entertainment centers ( "M5 Mall Ryazan", "Fair") , a warehouse complex "South gate" and 75% of the company "TGC-Trilogy", managing logistics complex Trilogy Park.

"Buy cheaper - sell expensive"

Active consolidation of funds for the purchase of new assets by the group "Safmar" started last summer, told RBC sources close to Gutseriev. "We are ready to sell everything and always: oil, gas and coal, gold, real estate, and all other things that we have - the issue price, - commented Mikhail Gutseriev then RBC through a representative group approach to asset management. - This is the essence of business: buy cheaper - sell expensive. Or buy something that does not sell, get in order to capitalize on and sell. That is again: buy cheaper - sell expensive. If the proposed price meets our expectations, we will sell. We sell all and always, in addition to the motherland. Motherland is holy "

Fixed assets Gutseriev family managed to raise in November 2016. "RussNeft", whose major shareholder is Mikhail Gutseriev, sold 20% of shares on the Moscow stock exchange for 32.4 billion rubles. One share of "RussNeft" was estimated at 550 rubles at the initial price range of 490-600 rubles. Total capitalization of the company amounted to $ 2.5 billion in the summer of Mikhail Gutseriev he said in an interview with RBC that counts on more appreciated -. $ 4-5 billion for the entire company. "The funds raised during the IPO, will send to the repayment of debt and the purchase of assets", - says Mikhail Gutseriev plans after the placement.

In August and September 2016 the group "Safmar" also put up for sale almost a third of its affiliated hotels: Hilton Moscow Leningradskaya (273 rooms), "the Holiday Inn Suschevsky" (310 rooms) and «Holiday Inn Lesnaya» (301 rooms), told RBC real estate market. These assets account for approximately 42% of room stock, controlled by "Safmaru" in Moscow. But direct all proceeds from the sale of funds for new acquisitions "Safmaru" will fail in the case of a successful transaction. Exhibited hotels together with three - Marriott (Marriott Royal Aurora, 230 rooms), «Marriott Tverskaya" (162 rooms) and the Marriott Grand Hotel (390 rooms) - are now in the mortgage from the VTB loan by $ 390 million.

In addition to "RussNeft" and hotel assets of the group "Safmar" and its shareholders own banking group BIN, leasing company "Europlan" non-state "Safmar 'pension fund, development groups A101," Mospromstroy "," Inteko "and other assets.

Creating megareteylera

"Safmar" considers the opportunity to integrate the "Eldorado" (as of September 30, 2016 combines 415 hypermarkets) and "Technosila" (85 stores), told RBC source familiar with the group's plans, and confirmed one of the parties to the transaction. "Technosila" was already in the portfolio of assets Gutserievs - Shishkhanov: 70% of the company passed BIN group when the company closed a deal to buy MDM Bank at the end of 2015. Consolidated revenues of the two retailers on the basis of 2015 amounted to 136.5 billion rubles, of which 19 billion - turnover "Technosila". When home appliances market size (based on 2015) in the amount of 1.192 trillion rubles. the proportion of retailers would have been 11.4%. But even if the association the new company will occupy the second place in terms of revenue after the "M.Video", whose turnover amounted to 162.6 billion rubles in 2015 (or 16.1% of the market).

General Director of "Technosila" Ilya Timchenko and the representative of "Safmara" declined to comment. As explained by RBC a source close to one of the parties, the question of consolidation of the two networks must be approved by the Federal Antimonopoly Service.

"In view of the revitalization group in IT deal it could be a promising platform for the dynamic development of this direction of the group, particularly in the field of online sales in the segment reteyla" - said RBC a source close to "Safmaru" interest group for companies - sellers of electronics . First of all we are talking about the diversification of the group's business, he said. According to him, it will give a synergy with the logistics area of ​​the group and the business of real estate - "Safmar" owns more than 1 million square feet. m of retail space, he recalls.

Combining "Technosila" and "Eldorado" can only be the beginning of a new giant in the electronics market. "Safmar" considering the purchase of other assets in the electronics market sales, told RBC source familiar with the group's plans. Among the company's interests there and the market leader - the company "M.Video", says another interlocutor RBC familiar with the plans of the group of Mikhail Gutseriev. But shareholders "M.Video" RBC denied plans to sell the company.