NTS in talks to sell 20% to IFC

2010-01-22



The grocery retailer Novye Torgovye Sistemy (NTS) has resumed talks with the International Financial Corporation (IFC), over the potential sale of a 20% stake in its business.
NTS plans to generate up to $70m through the sale, which it will use to restructure part of its $168.3m debt and to launch new stores. Should the deal be completed, it will be the first IFC investment in the Russian retail sector.
Talks between NTS and IFC began in 2008 but were put on hold as a result of the economic crisis.
NTS is a franchisee for the Pyaterochka and Paterson retail chains and owns the Stolichny chain of supermarkets. The company currently operates approximately 320 stores in Russia. According to preliminary data, it's 2009 turnover amounted to $403.8m.