Magnit owner switch changes little for minorities

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LONDON, Nov 19 (Reuters Breakingviews) – Magnit (MGNT.MM) is shuffling the shareholder pack as soon as once more. VTB (VTBR.MM) on Friday confirmed it was exiting the $9 billion Russian grocery store by promoting 5% to the market and round 12% to fellow shareholder Marathon. The state-backed lender purchased the shares from founder and Chief Executive Sergei Galitsky back in 2018.

The good news for minority buyers is that Magnit has returned 64% to shareholders since February 2018, in comparison with simply 1% at rival X5. The dangerous news is that it got here to e-commerce late, lacking final 12 months’s on-line purchasing increase, and competitors is fierce in meals retail with newer entrants like VkusVill planning to checklist learn extra .

Other than that, it’s type of as you had been. Minorities will nonetheless co-exist alongside a giant shareholder: Marathon will now have 29%. And Marathon co-founder Alexander Vinokurov additionally has a hyperlink to the Kremlin: he’s Russian Foreign Minister Sergei Lavrov’s son-in-law. (By Dasha Afanasieva)

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Editing by George Hay and Oliver Taslic

A customer shops at a supermarket in Moscow, Russia, October 20, 2016. REUTERS/Maxim Zmeyev