Chinese e-commerce giant JD.com set to acquire significant stake in Russian electronics retailer M.Video-Eldorado, acting as indirect co-owners.
In a recent development, the Russian electronics retailer PAO "M.Video" reported a 4% increase in revenue for 2024, totaling 451.6 billion rubles. However, the news about the forgoing of dividend payments by the shareholders of the company has not been confirmed to have affected the shares' trading price on the Moscow Exchange.
Despite the dividend announcement, the shares of M.Video on the Moscow Exchange rose nearly 10%, to 103.25 rubles per share. By 12:14 Moscow time, the increase had slowed to 4.72%, with shares trading at 98.75 rubles. It's worth noting that this rise might be attributed to factors other than the dividend decision alone.
The EBITDA indicator for PAO "M.Video" decreased by 9.8%, to 37.7 billion rubles, while the net loss for the company tripled in 2024, reaching 20.1 billion rubles. The merger of M.Video and Eldorado in 2018 did not impact the decision to forgo the payment of dividends for 2024.
Meanwhile, JD.com, the Chinese e-commerce giant, has expressed interest in developing business in Russia and promoting its products through M.Video. However, there is no direct information in the current search results about JD.com increasing its stake specifically in M.Video or the implications for the German owner's share in the company.
The German owner's stake in M.Video could be diluted in a planned additional emission if they fail to get permission from the foreign investment control commission. However, the general director of the combined company, Bilan Uzhakhov, who owns 53.633% of the shares, does not hold a significant portion of the shares that would be affected by the potential dilution. Additionally, Media Saturn Holding GMBH, which holds 15% of the shares in M.Video, is not directly affected by the potential dilution.
It's important to note that JD.com's stock has experienced some volatility related to domestic price wars and earnings reports, with its shares falling by about 2.86% amid Q2 earnings and price competition, despite 22% revenue growth and plans for European expansion. The share price movement seems more correlated with domestic market conditions and JD.com’s broader international acquisition plans rather than any M.Video-related stake changes.
In conclusion, no information confirms an increased JD.com stake in M.Video or effects on a German owner's share. The dividend forgo by the shareholders of PAO "M.Video" does not seem to have significantly affected the shares' trading price on the Moscow Exchange. Further research may be needed to clarify any recent developments regarding JD.com and M.Video.
