Sistema, Eastnine Deal for Melon Stake Has Been Amicably Terminated
By Elena Vardon Sistema JSFC and Eastnine AB said Sunday that their agreement on a transaction for Swedish Eastnine and East Capital Holding AB's entire. stake in Eastnine for $1.375 billion has been completed. The acquisition will give Sistema a 63.5 percent stake in Eastnine, a real estate inve
Eastnine AB and Sistema JSFC announced Sunday that they had terminated their agreement regarding a transaction for Swedish Eastnine's and East Capital Holding AB’s complete stake in Russian fashion retailer Melon Fashion Group.
According to the Russian investment company listed in London, all agreements for Melon's purchase of a 47.7% share were amicably ended.
The Swedish real-estate firm had reached an agreement with Sistema to sell its 36% share in Melon for approximately 193 million euros ($205million) on Oct. 19. The transaction was subjected to several conditions including approval by the Russian regulator and compliance with applicable sanctions.
Eastnine expected that the transaction would be completed by the first quarter 2023, but she stated that the conditions of the sale had not been met. This led to the termination.
"Eastnine will continue to seek an exit from its investment in MFG and is in dialogue with potential buyers regarding a sale of its holding in MFG," said Eastnine.