Novecon

Viktor Vekselberg's RENOVA CAPITAL investment fund has taken over 40% of shares in the Russian mail company SPSR EXPRESS from TRANSFERA.

The size of the deal remains undisclosed, with market participants putting it at $10 million. Founded in 2001, SPSR EXPRESS is operating on the Russian domestic express delivery market. It has a ramified branch network practically all across Russia. By the end of this year RENOVA CAPITAL is to invest up to $10m in developing the mail network. SPSR EXPRESS will use the funds thus raised to increase its share on the domestic delivery market in the segment of up to 30 kilograms from 20% to 25%, annual revenues from $30 million to $45m and profitability from 8.0% to 12%. RENOVA invests funds in mail transportation in light of a boom on the market, experts say. So, UPS evaluates the Russian express delivery market at $200- 400m a year.