The Russia M.Video issues 350 million US dollars for business openings, development

Moscow (Reuters) and the Russian retailers for consumer electronics, M.Video-Dorado, said on Friday that it would spend an additional $ 350 million for the openings in the branches, extended to new cities and expanded online sales in the first half of 2025 to pursue its three-year strategy.

The sanctioned state defense sector loan Promsvyazbank is in discussions on the purchase of M.Video, the newspapers registered by Kommersant and Vedomosti in January, citing sources that said that a sale could help M.Video to solve growing debt problems and to draw a permanent company closer to the Russian state.

Felix Lib, General Director of the M.Video-Deltorado Group, said that the company will be subjected to changes in the Board of Directors and in top management at all levels of corporate governance.

“The first payments of the new shareholders of 11.5 billion rubles have already been received by the company,” said Libb in a statement.

The total investment in March-April to implement the group's long-term development strategy will be 30 billion rubles ($ 350.88 million), he said.

Information about the new shareholders will be announced in accordance with the legislation, said M.Video.

M.Video, which consumers sells Electronics and homelands in around 1,240 shops across Russia, has seriously expanded its online presence since the Covid 19 pandemic.

Together with Promsvyazbank, M.Video is in the race for online marketplaces in Russia as well as specialists e-commerce companies such as Wildberries and Ozon, internet giant Yandex and deep into the focke, including dominant lender Sberbank.

($ 1 = 85.5000 rubles)

(Reporting by Olga Popova and Alexander Marrow; Editor from Mark Trevelyan)