Metro considering stake flotation in Russia unit

Europe's fourth biggest retailer Metro is considering floating a 25% stake in its Cash & Carry R…

Europe's fourth biggest retailer Metro is considering floating a 25% stake in its Cash & Carry Russia unit next spring.

The initial public offering (IPO) could value the unit at no less than €4 billion.

The unit will be competing with local rival Lenta, which is also planning to float in London early next year.

The Metro listing would take place in London, with a secondary listing possibly in Moscow, another of the sources said. The sources said the listing could take place in the spring or the second quarter of 2014.

"Investors do not get a chance to invest into a such growth asset every day", said a capital markets banker, who has discussed a possible listing of Cash & Carry Russia with Metro.

"Investors looking at Russia fear the unpredictability of corporate governance, a concern they don't have in Metro's case."