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Russian low-cost supermarket chain Dixy, the country’s third-largest, plans to delist from the Moscow exchange, the company said on Thursday.
Dixy’s board of directors voted on Wednesday to hold an extraordinary general meeting in December to vote on majority shareholder Igor Kesaev’s plan to take the company private.
Mr Kesaev, who already holds a controlling share, is attempting to buy back shares from the free float that would take his stake closer to the 75 per cent needed to approve the plan. Prosperity Capital Management, a firm that owns about 20 per cent of the company, has said it will oppose the delisting.
Dixy’s board, which Mr Kesaev chairs, approved his plans for a subsidiary to buy Rbs2bn in the shares in addition to the Rbs7.5bn it bought earlier this year. Russia’s anti-monopoly service approved a plan in September that would see the subsidiary buy up to 44 per cent of Dixy’s shares.
The chain, which has 2,700 stores across Russia, has struggled this year while competitors like X5 have seen their fortunes improve. Dixy’s revenue for the first nine months of this year was Rbs209.8bn, a decline of 10 per cent.