:. Food Industry News


Russian Retailer Dixy to Get $200 Million Loan

Source: Reuters
05/05/2008

Moscow, May 5 - Russian food retail chain Dixy plans to take out a five-year syndicated loan worth up to $200 million, the company said on Monday.

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Dixy said in a statement the loan, arranged by Citibank, will have an interest of not more than LIBOR plus 4.5 percent.

The deal is subject to shareholder approval at a June 9 meeting, Dixy said, adding it would offer 367.16 roubles ($15.52) per share to buy out shareholders who do not vote or vote against the deal.

Dixy's stock was up 3.85 percent at 348 roubles by 0830 GMT.

The retailer is majority owned by diversified holding company Mercury, which agreed to buy the chain from its founder, Oleg Leonov, in December last year.



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