BILLA BILL

REWE International AG has been represented on the Russian market by BILLA since July 2004, when an agreement was signed in the presence of President of the Russian Federation Vladimir Putin and German Chancellor Gerhard Schroeder, giving the right to enter the Russian market of the BILLA supermarket chain.

History

2022: Trust Bank received part of former Billa stores worth 3.84 billion rubles by court decision

As it became known in early February 2022, Trust Bank received part of the former Billa stores with a total value of 3.84 billion rubles by decision of the Moscow Arbitration Court. The credit institution achieved the sale of premises as part of the collection of debts from their owner Retail Chain Properties (RCP).

According to Kommersant, we are talking about 13 Billa stores in Moscow with a total area of ​ ​ almost 30 thousand square meters. m In the summer of 2021, 161 Russian Billa stores from the German Rewe Group bought the Lenta chain for 225 million euros. The rights to rent these 13 stores were transferred to the Russian retailer under the terms of the transaction.

Trust Bank received part of former Billa stores worth 3.84 billion rubles by court decision

However, Trust Bank secured the sale of these objects as part of the collection of debts from the owner of these areas. The Trust warned that they intend to follow the procedure for collecting assets, and intend to sell the property received at open auction.

The publication connects RCP with the ex-owners of the Trust Ilya Yurov, Nikolai Fetisov and Sergey Belyaev. In 2018, the bank collected in court from the company more than $107 million and over 690 million rubles of debt under two agreements of 2010. As of October 19, 2021, debts amounted to $133.08 million and 1.76 billion rubles, respectively. The Borrower performed its obligations improperly, and the Trust demanded recovery for the mortgage, according to court documents.

According to Infoline-Analytics, CEO Mikhail Burmistrov, when concluding a deal with Billa, Lenta shareholders took into account the possible risks of early termination of lease agreements under individual contracts. At the same time, according to the expert, a potential buyer is likely to be interested in maintaining an anchor tenant.

Experts interviewed by the newspaper believe that RCP has very little chance of challenging the court decision: the company had enough time to pay off the lender.^[1]

2021

Lenta completed the acquisition of Bill Russia supermarkets

On August 3, 2021, the Lenta multi-format retail chain of Russia announced that its indirect subsidiary Lenta LLC had completed a deal to purchase the Bill Russia supermarket chain.

As a result of the acquisition, approved by the Federal Antimonopoly Service of Russia in July 2021, Lenta will become the second operator of supermarkets in Moscow and the Moscow region in terms of the number of stores.

The purchase price at the time of closing was about 225 million euros, which reflects a number of adjustments at the time of completion of the transaction related to the actual level of cash, debt and working capital of Bill Russia.

Within 12 months, Lenta plans to integrate 161 acquired supermarkets, supply chain infrastructure, as well as Bill Russia employees into its own retail network.

It is expected that this acquisition will significantly accelerate the strategic expansion of Lenta in Moscow due to outlets, which are mature objects with a high sales density.

"Expansion in the supermarket segment is a strategic priority for Lenta. This deal will accelerate the transformation of the company, allowing us to instantly double our presence in this segment. In addition, the profitable location of stores will allow Lenta to continue to expand express delivery throughout Moscow, which successfully fits into plans for the significant development of the Lenta Online business in the coming years. We are pleased with the new opportunities that this acquisition opens up for us, and expect that it will make a significant contribution to the growth of the revenue and results of the activities of Lenta, "said Lenta CEO Vladimir Sorokin.

Lenta buys Billa network in Russia for 215 million euros

On May 19, 2021, Lenta announced the acquisition of the Billa supermarket chain in Russia. The transaction worth 215 million euros will be fully paid in cash to buyers (that is, without attracting its shares).

As a result of the transaction, Lenta intends to integrate 161 acquired supermarkets, logistics infrastructure and Bill Russia employees. As soon as the chain's stores are transferred to the Lenta brand, the Bill Russia trademark will cease to exist.

By May 19, 2021, Billa manages supermarkets with a total area of ​ ​ 138,051 square meters. m, most of the stores are located in Moscow and Moscow Region, the distribution center is located in Bykovo, Moscow Region.

Lenta buys Russian Billa for €215 million

According to Lenta CEO Vladimir Sorokin, the deal will double the total number of chain supermarkets, including providing retail space in the central regions of Moscow. The acquisition will give the company access to a "mature chain of stores with a steady flow of customers," and the profitable location of the points will allow expanding online delivery throughout Moscow, he said.

The press release notes that after the completion of the transaction, Lenta's total share in the grocery retail market in Moscow and the region will be about 3%, and the company will become the second largest supermarket chain in Moscow after the X5 Group, which owns Pyaterochka and Perekrestok.

By mid-May 2021, Lenta has 140 supermarkets and 254 hypermarkets in 89 cities in the European part of Russia. The company calls itself the country's largest hypermarket chain and the fourth among Russian retail chains in terms of revenue.

It is planned to close the deal to sell the Russian chain of stores Billa Lente in the summer of 2021. First, it must be approved by the Federal Antimonopoly Service (FAS).^[2]

2011

As of October 2011, 70 stores operated under the Bill trademark, which are concentrated mainly in Moscow and nearby regions (Tula, Kursk, Voronezh, Dzerzhinsk). The total revenue of the Russian network for 2009 year amounted to 320 million euros.

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