Yulmart will be poured into the Petersburg terminal

The conflict of shareholders of the online retailer may end with its sale to the creditor.
The stock conflict over Yulmart may end with the transfer of the online retailer to the hands of the creditor, owner of the St. Petersburg oil terminal (PNT) Mikhail Skigin. According to the scheme under discussion, for this Dmitry Kostygin and August Meyer will first acquire a stake in the third co-owner Mikhail Vasinkevich. After this, the retailer will also need external investments worth 9 billion rubles to reach profitability in 2022.

Yulmart shareholders expect to resolve the conflict in the near future, it follows from the presentation of the retailer for investors, which Kommersant got acquainted with. The scheme described in it implies that two of the co-owners of Ulmart Holding Ltd (UHL, the parent company of Yulmart) Dmitry Kostygin and August Meyer (together control 61.5% of the company) will acquire the share of the third partner Mikhail Vasinkevich (38.5%), and then they themselves will leave the company to “provide the new management team with an opportunity to develop the project from scratch.” 100% of Yulmart will be transferred to the owner and chairman of the PNT board of directors Mikhail Skigin. His company Ledaro credited Ulmart in 2016, and filed for UHL bankruptcy in the fall of 2018.

Yulmart did not confirm, but did not refute this information. “Negotiations with various potential investors are ongoing, but we are not ready to give names and companies,” the company’s press service said. Mikhail Vasinkevich and representative of Dmitry Kostygin did not answer questions from Kommersant. The lawyer of Mr. Skigin, Clement Rusakomsky, said that there are no clear agreements yet.

Mikhail Skigin is the son of St. Petersburg businessman Dmitry Skigin, who owned the PNT with partner Ilya Traber, who later became a defendant in the case of the “Russian mafia” in Spain. The last two "at one time" worked with Vladimir Putin in St. Petersburg, said the press secretary of the latter Dmitry Peskov.

The conflict between Yulmart shareholders has been dragging on since 2016, against which the company ran into claims by creditors and lost ground in the Russian online retail market, where it previously led. In 2018, a London court ordered Dmitry Kostygin and August Meyer to buy back Mr. Vasinkevich’s stake for $ 67 million, but the deal did not take place, which the parties blame each other.
The volume of the Russian e-commerce market in 2018 amounted to 1.285 trillion rubles, according to the Gaidar Institute for the National Distance Trade Association. According to Data Insight, Wildberries remained the leader in online sales in 2018, while Yulmart dropped nine positions to 17th.

From the presentation it follows that Yulmart needs external investments in the amount of 9 billion rubles, of which 4 billion rubles. they will go to working capital, 3 billion rubles — to “organic growth” and 2 billion rubles — to marketing and advertising. What share in the company an investor can claim is not specified. Yulmart’s revenue in 2018 amounted to 13 billion rubles, but already by the end of 2022 it could increase by almost five times, to 63.2 billion rubles, the company expects. The retailer plans to achieve positive EBITDA by the end of 2021, and net profit by the end of 2022.

The proposed scheme indicates that Dmitry Kostygin lost hope of restoring the value of Yulmart’s business, said Mikhail Burmistrov, CEO of Infoline Analytics. “Unfortunately, we can state that the moment has been missed for Yulmart. Both the moment of entering the IPO and the moment of a profitable sale, when potential buyers did not have or did not have enough logistics infrastructure, ”he explains. According to him, the option of entering Sberbank’s business into Ulmart was previously discussed - to use the infrastructure within the Yandex.Market JV, but the JV has already opened a third warehouse, he does not need Ulmart’s assets, like Wildberries or Ozon. Yulmart’s infrastructure is set up for an annual turnover of 60 billion rubles, otherwise the company will incur losses, Mr. Burmistrov believes.

Yulmart still has very decent positions and a loyal customer base with 4 million visits per month, it is definitely included in the top 50 in online retail, says Alexey Fedorov, managing director of the 220 Volt network. According to him, with investments of 2-3 billion rubles, mainly in marketing, Yulmart has a chance to enter the top 10. “There are a large number of funds that are ready to invest such money in Internet projects. Another thing is that now projects are evaluated on the basis of profit, and not the turnover that Yulmart used to catch up, ”Mr. Fedorov argues, summarizing that few people consider projects with a negative EBITDA in Russia.

After the release of the material, Mikhail Vasinkevich told Kommersant that “in recent months there have been attempts to resolve all existing disputes, a document has been developed and agreed on to resolve them.” According to him, a number of persons signed it, including Mr. Vasinkevich himself, however, “at the very last moment, August Mayer and his controlled persons refused” to sign it.