A5 controls 100% of Mosoblpharmacia assets

2012-01-24



The co-owners of A5 pharmacy retailer Sergey Solodov and Roman Buzdalin have bought out the 26% share in Mosoblpharmacia, the operator of about 500 pharmacies in the Moscow Province, from Hi Capital investment fund, founded by the Moscow Province authorities. The deal consolidated 100% of Mosoblpharmacia company under control of A5.

Also, the businessmen are planning to unite the two assets (A5 and Mosoblpharmacia) to take the leading position in the local market in terms of store count, which currently is held by 36.6 pharmacy retailer.

Initially, the stake in Mosoblpharmacia was to be acquired directly by A5, however, because of an internal conflict within the company between the two aforementioned businessmen and minority shareholders Vladimir Kintsurashvilli and Ivan Saganelidze, the asset was bought by structures legally not affiliated with A5. As Retail Update Russia reported on a previous occasion, Mr. Kintsurashvilli and Saganelidze are trying to sell their share of 3.8% in the chain to the majority holders. Lately, the businessmen intended to reach a price based on an estimation of the entire chain at $290m. However, for several months, they have not been able to receive the expected amount.
Among A5's shareholders there is one of the major Russian retailers X5 Retail Group.