Vladimir Melnikov, owner of Russia’s leading apparel retailer Gloria Jeans, is considering selling a 25% stake in the company. He revealed that negotiations are currently ongoing, while among the potential bidders are about 10 investors, some of whom are close to such companies as Inditex and H&M. The deal may be closed by the end of the current year, while its value may be around US$300-500m.
According to Melnikov, the company is currently looking for new points of growth and is ready to sell part of its stake.
Last year, Gloria Jeans’ proceeds doubled to RUB23.3bn (US$720m), while net profits reached RUB3.81bn (US$117.8m). Earnings before interest, taxation, depreciation and amortisation (EBITDA) amounted to RUB4.5bn (US$139m). The company operates around 600 stores and 48 factories worldwide.
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