Private investment company Severgroup has acquired a 42% interest in Russian grocery retail chain Lenta, for a total consideration of $729m.

According to Lenta, Severgroup purchased approximately 34.44% issued and outstanding voting shares from Luna, a company owned by TPG Capital Management.

The remaining 7.47% stake in the Russian hypermarket group was acquired from the European Bank for Reconstruction and Development (EBRD).

As part of the deal, the nominees of Luna and the EBRD currently serving on the Lenta Board of Directors have all stepped down. The nominees include board chair John Oliver and directors Dmitry Shvets, Steven Hellman, and Martin Elling.

The remaining members of the board are CEO Herman Tinga, chief financial officer Rud Pedersen and independent directors Michael Lynch Bell, Stephen Johnson, and Julia Solovieva.

“As part of the deal, the nominees of Luna and the EBRD currently serving on the Lenta Board of Directors have all stepped down.”

Lenta board of directors senior independent director Stephen Johnson has been a-appointed as chair of the board. The company will appoint all the vacated board of directors seats, at its next shareholders meeting.

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While signing the deal, earlier this month, Severgroup announced plans to make another offer to acquire the remaining Lenta shares for $18 per share or $3.60 per global depository receipt (GDR), following the completion of the current deal.

Citigroup Global Markets acted as Severgroup’s financial advisor in relation to the contemplated transaction and subsequent mandatory tender offer. Freshfields Bruckhaus Deringer served as legal advisor.