TPG-Backed Retailer Lenta May Be Worth $5 Billion, UralSib Says

Lenta LLC, a Russian hypermarket chain that’s reported to be weighing an initial public offering, may be worth as much as $5 billion, UralSib Capital estimated.

The retailer, which is controlled by TPG Capital, may be valued “significantly higher” than its London-traded peer O’Key Group SA, (OKEY) which also runs hypermarkets in Russia, Marat Ibragimov, an analyst at UralSib, said by e-mail today. O’Key has a market value of about $3.4 billion.

Lenta is interviewing investment banks with a view to raising about $1.5 billion listing global depositary receipts, Sky News reported yesterday, without citing anyone. Tim Demchenko, head of private equity at VTB Capital, which owns a 14 percent stake in Lenta, declined to comment. Yana Mogileva, a spokeswoman for Lenta in St. Petersburg, also wouldn’t comment.

Lenta’s revenue rose 22 percent last year to 110 billion rubles ($3.5 billion). The retailer had a margin on earnings before interest, taxes, depreciation and amortization of 11.6 percent, higher than the 10.6 percent Ebitda margin of OAO Magnit, according to a bonds presentation in February.

To contact the reporter on this story: Ilya Khrennikov in Moscow at

To contact the editor responsible for this story: Kenneth Wong at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.