M.Video may acquire Ukrainian Comfy
3 September 2010
M.Video is looking to acquire a share in Ukrainian household and electronics retailer Comfy, according to a report in Kommersant daily. Comfy operates a network of 72 stores and wants to expand its network to 111 outlets by 2012.Under consideration is a 10% stake in Comfy with an option to buy another 20% later on, although the value of the potential transaction has not been disclosed. The owner of the Сomfy network cited the year 2013 as the likely time for the deal to close.
There have also been reports that Comfy has garnered interest from international companies Best Buy, Media Markt and Dixons. Sources suggest M.Video is interested in acquiring Comfy because of its absence of debt leverage and relatively high average returns on its retail space. Returns are roughly USD300 per square metre, which is about 50% higher than for its rivals.