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Kenes Rakishev buys into Magnum Cash & Carry

Kazakhstan businessman Kenes Rakishev continues his along his buying spree. He has become an investor of Magnum Cash & Carry retail network purchased an non-controlling stake, Tengrinews reports.

Even though the stake is a non-controlling one, Kenes Rakishev is considered a strategic investor of the Kazakhstani network. The investments he made will be channeled into further development of the retailer and repayment of debts to creditors.

Magnum Cash & Carry retail network consists of nine stores with a total floor area of 73,000 square meters. Seven of the supermarkets are located in Almaty, another two are in Astana and Karaganda. Its own production exceeds 600 tons of various foods per month, amounting to $ 4 million. “The current situation in the retail market of Kazakhstan is favorable. We are 7-8 years behind Russia, and Russia is 7-8 years behind the West. Therefore, Magnum network has colossal growth prospects,” CEO of the retailer Aleksandr Garber said.

Days before Kenes Rakishev obained a premission from the central bank of Kazakhstan to purchase BTA Bank together with KazKommertaBank.

In February 2014, Kazakhstan’s largest bank KazKommertsBank and successful businessman Kenes Rakishev signed a preliminary agreement with Samruk Kazyna National Wealth Fund to buy 46.5% of BTA stock each. Samruk Kazyna National Welfare Fund acquired 75.1% of the bank in February 2009, when the bank was on the verge of collapse and defaulted on its payments to its foreign creditors. The fund steered the bank through two restructurings and brought its share to 97.3%. And now the state-own fund is returning the bank into private hands. 

The deal is nearing finalization as all the parties have made the necessary corporate decisions and obtained remissions from the authorities. After completing the acquisition, BTA is expected to merge with KazKommertsBank into Kazakhstan’s largest bank.

Kenes Rakishev is Kazakhstani businessman, one of the 50 most influential people of Kazakhstan. He is the chairman of BTA Bank Board of Directors. Kenes Rakishev also chair several other large companies including SAT & Company, a diversified industrial holding.

Source: Tengri News