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Russian unit of Metro adds banks for IPO-sources
April 9, 2014 / 10:06 AM / 4 years ago

Russian unit of Metro adds banks for IPO-sources

MOSCOW (Reuters) - The Russian unit of German retailer Metro MEOG.DE now has four banks working on its delayed initial public offering, with Morgan Stanley (MS.N) and Citibank (C.N) working alongside Goldman Sachs (GS.N) and Sberbank (SBER.MM), three financial sources said.

The checkout area of one of the top three cash and carry markets of Metro AG is seen in Sankt Augustin near Bonn March 18, 2013. REUTERS/Wolfgang Rattay

Metro has delayed the stock market listing of a quarter of its Russian cash-and-carry wholesale operation because of market turmoil. It had been expected to fetch at least 1 billion euros ($1.38 billion).

Metro had been eyeing an IPO of the unit around Easter, sources familiar with the plans previously said. The company said in March market conditions were not appropriate “in light of the recent political developments”.

The crisis over Crimea has forced several Russian companies looking to raise money via IPOs to put the plans on ice as they wait to see how severely Moscow would be hit by Western sanctions over its annexation of Ukraine.

Others waiting in the wings are children’s goods retailer Detsky Mir and consumer and corporate credit company Credit Bank of Moscow.

In a recent interview, Metro CEO Olaf Koch said the planned IPO had been well received by investors and should still proceed if the turmoil on Russian markets abated.

Citibank and Goldman Sachs declined to comment. Morgan Stanley, Sberbank and Metro could not immediately be reached for comment.

Reporting by Olga Popova, additional reporting by Emma Thomasson, Writing by Megan Davies, Editing by Timothy Heritage

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