Oleg Zherebtsov May Complete Lenta Sale by September

Oleg Zherebtsov, founder of Russian cash-and-carry grocery chain Lenta, went public earlier this year about his desire to sell his stake in the company. In February it was reported that Zherebtsov was in talks with several investors including Warburg Pincus, TPG, Apax Partners, BC-Partners and Siguler Guff & Company. It now appears that Marshall Capital Partners is the front runner and will possibly complete an acquisition by September.

Zherebtsov, who founded Lenta in 1993, has been looking to get out of the company since a conflict arose between shareholders about the direction of the company. The disagreement led to the dismissal of general manager Sergei Yushchenko and the hiring of Vladimir Senkin to replace him. Should Marshall Capital succeed in purchasing Zherebtsov’s 35% stake, the legal wrangling between him and fellow shareholder August Meyer would be resolved to the satisfaction of everyone involved.

Lenta (www.lenta.com)
Lenta operates 34 locations throughout Russia, mostly centered around St. Petersburg. Founded in 1993, the company began as “cash & carry” warehouses, supplying wholesale to cafes, restaurants and retailers. After the financial crisis of 1998, Lenta expanded its operations into the hypermarket sector. The company now specializes in retail and wholesale customers, offering a range of food and non-food products and services. Each location has an average of 12,000 sq. meters, with 400-600 parking spaces. Lenta is open 7 days a week, changing the dynamics of the retail sector in convenience and productivity.