MOSCOW (Reuters) - Safmar, which groups assets of billionaire Mikhail Gutseriyev’s family, could use part of the proceeds from its deal with German consumer electronics group Ceconomy (CECG.DE) to pay off its debt to VTB Bank (VTBR.MM).
“The funds raised could be partly directed to the repayment of debt owed to VTB,” M.video said in a statement on Wednesday citing its chairman Said Gutseriyev.
Ceconomy will pay around $300 million to Safmar as part of a deal that will give Ceconomy a 15 percent stake in Safmar’s consumer electronics retailer M.video (MVID.MM) and see it sell its loss-making Russian business to Safmar.
VTB, Russia’s second biggest bank, holds a stake in M.video as a collateral. Some other businesses of Gutseriyev’s family, in particular, mid-sized oil company Russneft (RNFT.MM), have also obtained loans from VTB.
Reporting by Olga Sichkar; writing by Maria Kiselyova; editing by Polina Devitt