TPG and VTB go shopping

Buyouts firm TPG Capital in co-operation with VTB Capital, the private equity arm of Russian state bank VTB, has acquired a 35.4% stake in Russian retail chain Lenta.

The value of the deal was not disclosed but industry sources estimated the purchase price was US$115m.

The deal is said to have been supported by all of the shareholders of the company. The new investors plan to increase shareholder value by focusing on operational management.

President and Global CEO at VTB Capital, Yuri Soloviev, said: “It is very important for VTB Capital to participate in investment projects in socially significant spheres of the Russian economy, particularly in retail business. The acquisition of a 35.4% stake in Lenta is but another example of implementation of VTB Capital’s strategy of investing in private companies in Russia and CIS.”