MOSCOW, Dec 30 Reuters Shares in Russia39;s largest children39;s toy retailer Detsky Mir slumped on Friday after its shareholders agreed to restructure the business in the form of a spinoff that could pave the way for the company to become private.

Detsky Mir, whose free float exceeds 50 and counts a host of Western funds and banks among its shareholders, in November said it was planning a gradual transformation into a private company, citing the need to maintain steady business operations.

Elements of the company39;s restructuring could serve as a template for other Russian firms with a large portion of foreign investors, as Western sanctions and Russian countermeasures have effectively frozen access to certain holdings.

A number of Detsky Mir39;s investors are facing challenges in voting at shareholder meetings, due to Western regulators39; negative view of the Russian stock market, the company has said.

Turnout at the restructuring vote was 54.85, above the more than 50 quorum required, with 97.91 of votes cast in favour.

The company39;s Moscowlisted shares were down as much as 10 at one point. By 1117 GMT, they were down 4.2 at 64.3 roubles, underperforming the wider market.

The move still faces hurdles, such as winning approval from the Russian authorities. Detsky Mir shares fell to their lowest in months when the plan was announced last month.

The company is strong enough that longterm investors could have an incentive to remain, BCS Express analysts said,…