The shareholders also endorsed an additional emission of 15.8 million of Pyaterochka shares. The company, Russia's largest grocery retailer with sales of $1.34 bln in 2005, is set to pay the sum using the money raised from the additional emission and funds worth $300 million.
Pyaterochka, which made its initial public offering on the London Stock Exchange in May 2005, raising $600 million, announced the deal to buy Perekryostok from Alfa Group and Templeton investment fund on April 12. The merger is expected to be completed in the second quarter of 2006.
Pyaterochka and Perekryostok operate supermarkets in Moscow, St. Petersburg, and the Urals city of Yekaterinburg. Pyaterochka, which was founded in St. Petersburg in 1999 and became popular through its network of discount stores, also has franchises in Kazakhstan and Ukraine.
Perekryostok financial director Vitaly Podolsky said the united network was set to own 700 discounters and 240 supermarkets and to earn $6 billion in 2008.
