Bloomberg News

Dixy Jumps on Report Retailer to Buy Out Holders Opposed to Loan

June 04, 2012

OAO Dixy Group rallied after Interfax reported it plans to buy the stock of shareholders who don’t vote in favour of an 18 billion ruble ($538 million) loan.

Dixy jumped 1.9 percent to 302.55 rubles by the close in Moscow after rising as much as 5 percent earlier.

The Russian food retailer will offer 338.95 rubles a share and will hold its annual meeting on June 28, the news service reported, without saying where it got the information.

“The buyout offer is about 12 percent higher than the market price,” Marina Gutneva, an analyst at Aton LLC in Moscow, said by phone.

Dixy’s net income more than doubled in the first quarter from the same period last year to 356 million rubles, the company said earlier. Sales almost doubled to 34.7 billion rubles.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Alex Nicholson at anicholson6@bloomberg.net


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