Dixy retailer to hold 11.4% SPO to buy Victoria chain

Russia’s Dixy Group food retailer is to hold an 11.4 percent issue of new shares in a secondary public offering to finance the acquisition of the Victoria retail chain.

The new issue will amount to 14.19 million shares. The May 18 EGM will discuss an underwriting agreement with VTB Capital, a source familiar with documents prepared for an upcoming emergency shareholders’ meeting told RIA Novosti late on Thursday.

Dixy wants to buy Victoria for 25.6 billion rubles ($890 million) to create Russia’s fifth largest food retailer by sales and third largest by the number of stores.

Last week Dixy agreed a 4.5 billion ruble ($160 million) loan from UniCredit Group to pay for Victoria. The company said the acquisition was also to be financed by share capital.

MOSCOW, April 22 (RIA Novosti)

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