Russian McDonald's buyer to snap up another Western firm

The owner of McDonald's former restaurants in Russia has offered up to 151 million euros ($151 million) to buy Finnish packaging firm Huhtamaki's local business, adding to his burgeoning empire, documents seen by Reuters showed. 

The deal by Siberian businessman Alexander Govor enhances his status as one of the major corporate winners to emerge from the sanctions-inflicted turmoil that followed Russia's military intervention in Ukraine.

Govor said he had paid a "symbolic" sum for McDonald's Corp restaurants in Russia when relaunching under a new brand, Vkusno & tochka, which translates as "Tasty and that's it", in June.

He is set to buy Huhtamaki's Russian business using a loan from state lender Sberbank and a Cyprus-registered company, Espentina Limited, the documents showed and a source close to the deal said.

Govor and Yuri Kushnerov jointly own Espentina, Cyprus filings shared with Reuters show. The two men also hold equal stakes in an oil refinery in Russia's central Kemerovo region.

Kushnerov did not immediately respond to a request for comment sent through a company he owns.

Govor plans to use funds obtained from dominant state lender Sberbank, which is under Western sanctions, for the transaction, a source close to the deal said. The funds will be diverted to Espentina via his solely-held Russian firm Club Hotel, the owner of McDonald's former restaurants.

"We are prepared to proceed with the acquisition of the Finnish holding company," an undated letter from Club Hotel Director Elena Vnuchkova said.

"Espentina will pay the price from its non-Russian account...We will be prepared to increase the proposed price to 151 million euros."