Euroset co-owners Yevgeny Chichvarkin and Timur Artemyev have exited the business, selling their stakes to entrepreneur Alexander Mamut. According to one version, Mamut might soon resell the asset to one of the mobile telecom leaders.
The huge retail chain of 5,000 outlets with a turnover of $5.6 billion, according to some data, was valued at only $400 million. The reasons cited were a debt of $850 million and a series of scandals arising from tax claims by government agencies, and then the arrest of two top managers of the company accused of kidnapping one of their colleagues in 2003.
Plans of the co-owners
Chichvarkin spoke ironically to the magazine about his future intentions: “I’ll grow potatoes: I’ll be a small business, and the state will help me.” According to some data, he still hoped to remain chairman of the board of directors of Euroset.
The deal, as described by the publication, had an unexpected effect on Timur Artemyev: he decided to seriously engage in investments in science and biotechnology.
Competitors and the market
According to the magazine’s observation, Euroset’s competitors might follow in its footsteps. Thus, the Tsifrograd chain last week sold 25% of its business to a pool of investors led by investment banker Dmitry Ivanter. In an era of crisis, managing a business with a profitability of 2–5% is no easy task, the publication noted.
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