Dragon Capital Investments Limited has sold its controlling stake in private joint-stock company Nova Linia (Kyiv region), which is developing a network of eponymous DIY hypermarkets selling construction materials, to Oferent venture fund, part of the Epicenter Group, a large player on the market with the eponymous hypermarket chain, Dragon Capital said in a report on Thursday, October 31.
The company said that the sides would not comment on the conditions of the deal, referring to confidentiality.
The seller said that at an extraordinary general meeting of shareholders in private joint-stock company Nova Linia the decision to reshuffle the company's supervisory board and the regulations of the company were updated.
From November 1, 2013, Borys Artari-Kolumb occupied the post of director general instead of Y. Baranov. Artari-Kolumb until recently was director general of Epicenter K LLC, the company said.
"We're satisfied with the result of our investment in Nova Linia… Today we've come to the conclusion that the further growth and the company's development will be the most effective in hands of a strategic investor," the document says, citing Dragon Capital Managing Director Tomas Fiala.
A representative of the buyer, Yuriy Symonenko, said that the acquisition of the Nova Linia for the Epicenter Group is the next stage of the strategic development of the business.
"We're sure that this will strengthen the leading positions of the Epicenter Group on the DIY retail market and will allow it to become stronger in the new format," he said.
Nova Linia is a first national chain of DIY and Home Improvement hypermarkets. The first hypermarket was opened in Kyiv in 2001. At present, the chain includes 16 hypermarkets all over Ukraine with a combined gross trade area of over 230,000 square meters.
Dragon Capital became a co-owner of Nova Linia in 2002, and Sweden-based East Capital joined Nova Linia's stockholders in 2004.
The Epicenter Group since 2003 has been developing the chain of eponymous DIY hypermarkets in Ukraine. The group belongs to Oleksandr Hereha (MP from the Party of Regions) and his wife, Secretary of Kyiv City Council Halyna Hereha.
