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Monday, July 20, 2009

O'Key Ukraine Change Strategy Again

Till now «O`Key» declared the looking for a strategic investor to keep operations, but now the company is considering to sale the whole business.

The company was ready to sell 50% of the equity to raise funds necessary to maintain the growth - till 2011 the company had planned to take a 3-5% retail market share. Then, experts evaluated 100% of the chain approximately USD56 mln.

«The negotiations are almost done. Three strategic investor came in the last round of and in the next two weeks will be open the buyer», - reported «Renaissance Capital Ukraine», which is consultant of the deal.

There are the few details of expected transactions. In the «Panorama Group», which are the developer of shopping centers (have a same owner with the «O'Key») stated that the intention to terminate the lease with the «O'Key» in 3 SC. This is a "Sky Mall" in Kiev, "Sunny Gallery" in Kriviy Rog and "Flagman" in Zaporozhye.

«O'Key» develop four hypermarkets (total shopping area K36 sqm) in Kiev, Kriviy Rog, Zaporozhye and Kharkiv. Income in 2008 - UAH 740 mln. 100% share of the company (through «Expert Capital») own by estonian investor Hillar Teder.