Cofix expands to Russia

Cofix
Cofix

The cut-rate coffee house chain reports it has signed an investment agreement and is aiming at 1,000 branches in Russia.

Cofix Group Ltd. (TASE:CFX) today notified the TASE that its Urban Cofix subsidiary had signed an agreement with a private company led by Satesh Melwani and Mikhail and Grigory Perchersky to set up a chain of cafes in Russia under the Cofix brand name for the sale of coffee, beverages, pastries, and sandwiches, all at the same price.

Under the agreement, a joint company will be founded in Cyprus, with Cofix owning 36.44%, the investment group 61.56%, and another party 2%. The investment group and Cofix will provide the Cyprus company with up to $1 million: $850,000 from the investment group and $150,000 from Cofix. Cofix will grant the joint company the exclusive rights to use of the Cofix brand name in Russia.

According to the plan, the first stage will consist of three independently operated cafes, the second stage will include 300 franchises in Moscow, the Russian capital, and the third stage will bring the number of branches in Russia to 700-1,000.

Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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