Press-release
Krasnodar
July 1,
2015
PJSC “Magnit” Announces the Execution
of the Related Party Transaction
Krasnodar, July 1, 2015:
PJSC “Magnit”, Russia’s largest food retailer (the “Company”, the
“Issuer”; MOEX and LSE: MGNT), announces the execution of the
transaction on June 30, 2015.
The essentials of the transaction are as follows:
| Type of
transaction: |
Related party transaction; material transaction which is not
major |
| Subject of
transaction: |
Provision by the Issuer of the guarantee under the Agreement
on the opening of the revolving credit line ?29-15/1/496 of
15.08.2014 (hereinafter – the “Credit agreement”) executed between
Open Joint Stock Company “Sberbank of Russia” (hereinafter – the
“Creditor”) and JSC “Tander” (hereinafter – the
“Borrower”) |
| Content of the
transaction: |
In
accordance with the additional agreement to the guarantee agreement
?29-15/1/496?1 of 15.08.2014 the Guarantor shall be solidarily
liable to the Creditor for the proper fulfillment of obligations of
the Borrower under the Credit agreement executed on the following
terms:
- the limit amount of the credit line: 15,000,000,000
(Fifteen billion) rubles;
- the credit maturity date: August 13, 2017;
- the interest rate for the credit use is determined in
accordance with the Credit agreement and amounts to not more than
15 (Fifteen) percent per annum |
| Deadline for the
fulfillment of the obligation: |
The
term of validity of the guarantee – until August 13, 2020; prior to
the specified term the guarantee is terminated upon fulfillment of
all obligations under the Credit agreement by the Borrower,
or upon fulfillment of obligations under the Agreement by the
Guarantor or to the extent otherwise stipulated by the legislation
of the Russian Federation |
| Parties and
beneficiaries under transaction: |
The
creditor – Open Joint Stock Company “Sberbank of
Russia”
The guarantor – Public Joint Stock Company
“Magnit”
The borrower (beneficiary) – Joint Stock Company
“Tander” |
| The
amount of the transaction in the monetary value and as a % of the
asset value of the issuer: |
19,239,143,836
rubles which amounts to 24.36% of the balance sheet assets of the
issuer |
| Asset
value of the issuer as of the closing date of the accounting period
preceding the execution of the transaction: |
78,978,786
thousand rubles |
| Date of the
transaction execution: |
June 30,
2015 |
| Information on the
approval of the transaction: |
The transaction
was approved by the annual General shareholders meeting of June 4,
2015 (Minutes of the annual General shareholders meeting of PJSC
“Magnit” w/o No. of June 5, 2015) |
For further information, please
contact:
| Timothy Post |
Director, Investor
Relations
Email: post@magnit.ru
Office: +7-861-277-4554 x 17600
Mobile: +7-961-511-7678
Direct Line: +7-861-277-4562 |
| Dina Svishcheva |
Deputy Director,
Investor Relations
Email: Chistyak@magnit.ru
Office: +7-861-277-45-54 x 15101
Mobile: +7-961-511-0202
Direct Line: +7-861-277-4562 |
Company description:
Magnit is Russia's largest food
retailer. Founded in 1994, the company is headquartered in the
southern Russian city of Krasnodar. As of March 31, 2015, Magnit operated 28 distribution
centers and over 10,000 stores (8,581 convenience, 300 hypermarkets
and 1,239 drogerie stores) in approximately 2,180 cities and towns
throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS consolidated financial
statements for 2014, Magnit had revenues of RUB 764 billion and an EBITDA of RUB 86 billion. Magnit's local shares are traded
on the Moscow Stock Exchange (MOEX: MGNT) and its GDRs on the
London Stock Exchange (LSE: MGNT) and it has a credit rating from
Standard & Poor's of BB+. Measured by market capitalization,
Magnit is one of the largest retailers in Europe.