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Euroventures Ukraine Fund I lets the Auchan Group in Ukraine
March 14, 2007
Euroventures Ukraine was instrumental to a triple partnership agreement signed on March 11, 2007 between its investee company Furshet and the world's 10th largest retailer the Auchan Group. The companies bend common effort to develop the Ukrainian retail market. Last weekend Euroventures Ukraine, being a direct shareholder in Furshet group, also acted as Investment Advisor to Furshet in its transaction with Auchan. As a result of the negotiations, a strategic partnership agreement with the Auchan Group was signed. Auchan enters the Ukrainian market by: a) creating two joint companies: - the first one, to develop Auchan under its banner. It will be managed by Auchan, with Auchan holding 66% of the capital, the Furshet group 19%, and Igor Balenko, 15%. - the second one, to develop shopping mall activity in Ukraine, each mall to include either an Auchan store or a Furshet supermarket. 50% of the capital will be held by Auchan, 40% by Igor Balenko and 10% by a third financial partner. b) and, acquiring a 20% capital stake in Furshet, approximately 15% of which will be sold by financial investors including final disposition of EVU's and EBRD's stakes. The transaction will be finalised at the end of May or early June. The completion of the agreement will be subject to regulatory approval of Ukrainian authorities. In 2002 Euroventures Ukraine Fund I invested US$ 2.5 million to finance Furshet's expansion. Currently, Furshet is the second largest retail chain in Ukraine (2006 Net revenues were US$ 481 million), which became an attractive partner for a French retailer operating in 12 countries with EUR 33.6 billion of revenues. See also Financial Times Korrespondent Kommersant Commercial Property Eizvestia Delo Pravda
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