Sber, Mail.ru complete acquisition of Local Kitchen

699
2
AK&M 05 October 2020 22:45

O2O, a joint venture between Sberbank and Mail.ru Group, has completed the acquisition of 84.7% stake in the Local Kitchen service. The founders of the service will retain the remaining shares, Sberbank informed.

Following the integration Local Kitchen into the ecosystems of Sber and Mail.ru the companies will be able to share the technologies so as to improve all O2O products.

The service currently has 34 kitchens in Moscow making food for the residents of the respective surroundings. Users of the service make more than 20,000 orders daily.

Mail.Ru Group Limited is the holding company of a number of subsidiaries, including Russian operational companies. The company owns the leading Russian-language social networks Vkontakte and Odnoklassniki, an e-mail service, the Mail.ru web portal and three messengers. Mail.ru the Group also owns game projects united under the MY.GAMES brand. In 2019, the company launched the Mail.ru Group Tech Lab division engaged in the development of new technologies. Mail.ru Group owns a stake in AliExpress Russia, a joint venture owned together with Alibaba Group, MegaFon and RDIF, and develops the O2O platform in the food and transport segment together with Sberbank.

Aggregate IFRS net profit of Mail.ru Group for Q1 2020 decreased by 22.2% year-on-year to RUB 2.203 billion. Mail.ru Group's share in the net results of the key JVs (AliExpress Russia and O2O) was a loss of RUB 2.26 billion in the first quarter. The company's total segment revenue increased by 14.3% to RUB 22.332 billion, total segment EBITDA increased by 4.1% to RUB 5.729 billion. Net debt stood at RUB 11.422 billion as of March 31, 2020.

Sberbank of Russia (tax number: 7707083893) is the largest bank in Russia, Central and Eastern Europe. The Bank is the principal lender to the Russian economy and has the highest share in the market of deposits. The bank's authorized capital is RUB 67.76 billion. It consists of 21,586,948 thousand common shares and 1 billion preferred shares with a face value of 3 rubles each. The Russian Federation represented by the Ministry of Finance owns 52.32% of Sberbank's total voting shares.