PPF Group in financing agreement with Eldorado retail network
09/17/2008
PPF Group N. V. today announces that it has entered into a financing agreement with Eldorado, a major Russian consumer electronics retail network. The loan is to be made available in two tranches. Loans that have previously been provided to the Eldorado network by PPF Group will also be extended.
The new credit facilities are intended to strengthen Eldorado’s working capital, which is primarily employed by the retail network for settling overdue trade payables to suppliers. The conditions of the additional financing for Eldorado give rise to the possibility of a PPF Group takeover which would afford PPF a substantial, up to a majority, stake in the retailer. Any such development would as standard procedure dictates, be subject to the appropriate Russian regulatory approvals.
Jiri Smejc, shareholder of PPF Group N.V. said: ”Co-operation with the Eldorado, the Russian retail network, has always been pivotal to the successful development of our consumer finance activities, one of the core businesses of PPF Group. It has been always a top priority of PPF Group’s shareholders and management to explore ways in which can broaden its interests in Eldorado and we will of course seek the necessary regulatory approvals prior to any acquisition of Eldorado’s shares should this situation arise.“
Igor Nemchenko, CEO Eldorado network said: “Co-operation with PPF Group enables Eldorado to continue to run our operations successfully and to retain jobs within the business.”
The new credit facilities are intended to strengthen Eldorado’s working capital, which is primarily employed by the retail network for settling overdue trade payables to suppliers. The conditions of the additional financing for Eldorado give rise to the possibility of a PPF Group takeover which would afford PPF a substantial, up to a majority, stake in the retailer. Any such development would as standard procedure dictates, be subject to the appropriate Russian regulatory approvals.
Jiri Smejc, shareholder of PPF Group N.V. said: ”Co-operation with the Eldorado, the Russian retail network, has always been pivotal to the successful development of our consumer finance activities, one of the core businesses of PPF Group. It has been always a top priority of PPF Group’s shareholders and management to explore ways in which can broaden its interests in Eldorado and we will of course seek the necessary regulatory approvals prior to any acquisition of Eldorado’s shares should this situation arise.“
Igor Nemchenko, CEO Eldorado network said: “Co-operation with PPF Group enables Eldorado to continue to run our operations successfully and to retain jobs within the business.”