February 16, 2018
PJSC Magnit announces a material fact about information, which, in the issuer's opinion, is price sensitive
Krasnodar, February 16, 2018: PJSC Magnit, a leading Russian retailer (the "Company"; MOEX and LSE: MGNT), announces a material fact about information, which, in the issuer's opinion, is price sensitive:
Sergey Nikolaevich Galitskiy, the Company's founder and largest shareholder, informed the Company today that he had entered into an agreement with a subsidiary of VTB Bank (PJSC) to sell of his 29,656,200 (twenty nine million six hundred and fifty six thousand two hundred) shares in the Company (29.1% of the total number of outstanding shares) and that he intended to step down as the General Director of the Company and a member of its Board of Directors. The closing of the sale of his shareholding is conditional upon the necessary approval by the FAS of Russia and upon terms and conditions customary for this type of transaction.
The Company, on its own behalf and on behalf of its shareholders and all employees, would like to express their profound gratitude and deep appreciation to Sergey Nikolaevich Galitskiy for his efforts to create and build a unique business in Russia and to wish him every success in all his future endeavors.
The Company and the purchaser of the shares intend to continue the Company's dividend policy and to pay out part of the Company's profits to its shareholders as early as in the second half of 2018. Concurrently, the Company intends to consider the possibility of a share repurchase plan in 2018. Part of the shares so repurchased is proposed to be used as a long-term incentive for the Company's management.
For further information, please contact:
Head of Investor Relations
Email: [email protected]
Office: +7-861-277-4554 x 17600
Direct Line: +7-861-277-4562
Deputy Director, Investor Relations
Email: [email protected]
Office: +7-861-277-4554 x 15101
Media Relations Department
Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of December 31, 2017, Magnit operated 37 distribution centers and 16,350 stores (12,125 convenience, 243 hypermarkets, 208 Magnit Family stores and 3,774 drogerie stores) in 2,709 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS management accounts for 2017, Magnit had revenues of RUB 1,143 billion and an EBITDA of RUB 92 billion. Magnit's local shares are traded on the Moscow 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.