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Monday, August 27, 2007

Velika Kishenya Seeks Funds For Future Expansion

Group of companies "Velika Kishenya" plans to come on the IPO in mid-2008, 15-25% of the shares. The"Economic news" reports according to group's CFO Oleg Pyavka.

In the future the company plans to increase its market share by increasing sales, as well as acquisitions of other retail chains. Now Kishenya share on Ukrainian market is about 2%. And, as Mr. Pyavka stated, in the future the consolidation of retail in Ukraine is pretty much possible.

In addition, they announced intentions to enter in CIS market. "I think that is, first and foremost, the CIS markets. But regarding Russia, taking into big competitiveness among local and international players that's quite complex and therefore less attractive, "he said.

Currently, shares of Retail Group JV, operational manager of "Velika Kishenya", quoted in the First stock trading system "(PFTS, Kiev) only for the Ask with price equal to the USD 775 mln.

As reported in 2007 March, referring to Roman Lunin, the Chairman of the Supervisory Board of Retail Group, Great Kishenya has planned the IPO in the Q2 2008. "Based on the latest price of placement in March 2006, our capitalization USD 387.5 mln ... Since then, the indicators of the company increased by 80%. I hope that over time our capitalization exceeds $ 1 billion, "said Mr. Lunin.

Previously, "Great Kishenya" was going for the IPO in the H2 2007 or early 2008 on the London Stock Exchange or in the alternative markets. "

Company plans to get in own development portfolio USD 250 mln from foreign markets by placing additional equity instruments for USD 100 mln. As well as another USD 150 mln, obtained from bank loans.

Now "Velika Kishenya" operate in 14 cities and has 34 objects (27 supermarkets and 7 hypermarkets), five of whom are in their own shopping centers. Total GLA is about K90 sqm.

Turnover in 2004 - USD 109 mln, in 2005 - USD 232 mln, in 2006 - USD 403 mln.