Monarch shoes retailer mulling sale of 26% stake in group

16:10

Monarch Group, which is developing the Monarch shoes chain in Russia and Ukraine, is mulling the possibility of selling a 26% stake in the group, Vladyslav Nechay, the director general of Royal Shoes Ltd. (Kyiv), which is develops the Monarch store chain in Ukraine, has said.

"We have plans. We're in talks with one company. The deal concerns a 26% stake," he told journalists at a press conference in Kyiv on Thursday.

Nechay did not clarify the cost of the stake, adding that talks are being held with a company from Britain.

"Before the economic crisis, both Russian (OOO Monarch, which is developing the Monarch shoes chain in Russia) and the Ukrainian companies were worth $140 million. Taking into consideration the current situation, I think the price could be about UAH $70-90 million," he said.

The company director general said that currently the juridical and financial due diligence of the group's companies is being held.

"We have to complete due diligence by the end of September. If everything is ok, we will start an international audit. The issue is to be clarified by the end of 2010," he said.

Monarch international group has representative offices in China, Hong Kong, Brazil and Europe and supplies shoes under the brands of Monarch, Kaiser, WildCat and Good Shoes to Ukraine and Russia. The Monarch chain unites over 200 stores in Russia and Ukraine, including 76 stores in Ukraine as of September 2, 2010.

Royal Shoes Ltd. was created in Kyiv in 2008 to develop the Monarch shoe store chain.