C iting a very heavy debt load in need of servicing, Ukrainian grocery chain Pakko has reached a preliminary agreement to sell a significant stake in the company to Abris Capital Partners of Poland. Though details are unknown, the deal has been estimated to be worth as much as USD 10 million for a 50% share.
Other bidders are being courted for the 50% share, or smaller future shares if Pakko needs more cash to settle its debts. Earlier in the year the company announced mergers with some of its Ukrainian competitors in an attempt to attract foreign private investment.
Pakko (www.pakko.ua)
Pakko is a Ukrainian grocery retailer based in the north-western city of Lutsk. The company operates 88 supermarkets and 9 cash-and-carry outlets throughout Ukraine’s major cities. Under the brand names Vopak and Pakko, the grocer’s total operations utilize a combined 80,000 square meters of
retail space carrying more than 10,000 items. Pakko employs some 5,000 people in eight regions across Ukraine.
Abris Capital (www.abris-capital.com)
Warsaw-based Abris Capital Partners is a private equity firm active in Central and Eastern European markets. The firm prefers growth capital and buyout opportunities in companies with an enterprise value between €15 million and €45 million.
Their investments concentrate on the following sectors: alternative energy, business services/transport, commercial and consumer manufacturing, construction and infrastructure, education, environment/waste management, financial services, FMCG, healthcare, retail, telecommunications and media, and tourism. Abris Capital’s 15 employees work from offices in Warsaw, Kiev, and Bucharest.
