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Amazon, SoftBank eyeing a deal with Russian online retailer Ozon

Amazon, SoftBank eyeing a deal with Russian online retailer Ozon
Amazon, SoftBank eyeing a deal with Russian online retailer Ozon

Amazon, global retail giant and Japanese multinational conglomerate, Softbank have reportedly contacted Russian company Sistema regarding the deemed acquisition of Ozon, the online retail segment.

For those uninitiated, OZON is a Russian online retailing behemoth, operating since 1998. OZON.ru is one of the largest Russia based online multicategory electronic-commerce platforms. It reportedly offers a huge range of 2mn SKUs spread across twenty four product categories and has over 2 million daily active users.

Sistema has admitted that it was looking for companies to invest in Ozon. Although it is very unclear if discussions are still under way or have ended cite sources close to the matter. Sistema already accounts for over 40% share of Ozon.  

 Sistema’s majority owner Vladimir Evtushenkov, reported that Ozon is attracting many foreign investors including SoftBank.

Furthermore, he also confirmed that it is the only Russian company at which Amazon was looking from the participation point of view.

Evtushenkov also admitted that chief executive of Ozon, Aleksandr Shulgin, met Jeff Bezos 5 or 6 months ago.

Ozon has of late attracted various investors, for instance Sberbank, biggest Russian lender, has reportedly been in talks for purchasing a large stake in the online seller.

As of today, the AGM passed a resolution to distribute RUB 1,254.5 million in dividends for FY 2019 (RUB 0.13 /ordinary share or RUB 2.6/GDR), which is 18% above the dividends distributed for 2018.

Managing Partner of Sistema Alexey Katkov reportedly stated that the company was satisfied the unexpected growth of Ozon in 2019. He added that the funding provided by the key stakeholders would enable the organization to maintain its swift growth pace in the year 2020 supporting a consistent increase in its market share.

Source-

https://www.foxbusiness.com/markets/amazon-softbank-held-talks-over-russian-online-retailer-ozon-shareholder-says

https://sistema.com/press/pressreleases/sistema-announces-decisions-taken-by-agm-and-the-board-of-directors

https://www.pymnts.com/news/partnerships-acquisitions/2020/amazon-rumored-to-have-interest-in-buying-russian-ecommerce-player-ozon/

About the author

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.