We sell Uralagrotorg plc shares to increase our profits, says shareholder of Pyaterochka-Chelyabinsk Yelena Krasnikova

24 January 2006 (08:46)

‘The primary intent of selling our 26% share holding in Uralagrotorg plc to Agrostar (Pyaterochka Holding) is to increase profits,’ claimed shareholder of Pyaterochka-Chelyabinsk Yelena Krasnikova while commenting for UrBC upon signing of the share purchase agreement.

‘Our efforts to enter into an alliance with the biggest Russian retailer are determined by hopes to increase not only profits but also our market share’ Ms Krasnikova says.

While commenting on the Agrostar expectations to increase its share in Pyaterochka-Ural up to 100%, Ms Krasnikova indicated that this is not to affect the positive dynamics of Pyaterochka trading network development.
All this is the outcome of Agrostar signing a share purchase agreement concerning 26% share holding in the capital of Uralagrotorg plc on January 18, 2006. This fact was reported by RBCDaily.ru. Uralagrotorg plc is a Pyaterochka franchise dealer in Chelyabinsk. The amount of the transaction comes to 43.5 million RUR. The agreement also provides for setting up a new company Pyaterochka-Ural by June 1, 2006. Pyterochka-Ural is expected to consolidate Uralagrotorg and Economtorg (Pyaterochka subsidiary in Yekterinburg). 51% share holding in Pyaterochka-Ural is going to belong to Agrostar, and 49% share holding is to be purchased by the main proprietor of Uralagrotorg for the 74% share holding of the latter company. Pyaterochka is also going to increase its share in Pyaterochka-Ural up to 74% by 2008 and then up to 100% by 2010.

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