The Board of Directors of OJSC OR, the parent company of Obuv Rossii GC, decided to increase the authorized capital of the Company from 7 to 8,8 billion rubles through an additional issue of shares. The funds from the additional issue placement will be used to finance the Group’s five-year investment program in the amount of 6 billion rubles.
“The decision to conduct an additional issue of shares is the next step in the implementation of the program to finance the dynamic growth of the Group’s business. - comments Anton Titov, director of the GK “Obuv Rossii”. “I’m sure that this will ensure the stability of the Group’s activities as part of the implementation of our large-scale investment program.”
In early September, Obuv Rossii consolidated its assets in OAO OR with an authorized capital of 7 billion rubles. The main shareholder of the newly created OJSC was Anton Titov, director of Obuv Rossii GC, and the group also includes top managers of the Group. The Board of Directors of OR OJSC consists of 7 members, two of which are independent directors.
The funds raised as a result of the additional issue of shares will be used to expand the retail network - by 2018, Obuv Rossii plans to increase its network of stores to 650 outlets, and revenue to 18,5 billion rubles. Implementation of the five-year investment program will allow Shoe of Russia to enter the top three largest shoe chains in Russia, strengthen leadership in the mid-price segment, increasing its share in it to at least 4% in value terms.