Press Release | Krasnodar | April 5, 2019
ANNOUNCEMENT REGARDING POTENTIAL TRANSACTION
Krasnodar, Russia (April 5, 2019): PJSC "Magnit" (MOEX and LSE: MGNT; "Magnit" or the "Company") one of Russia's leading retailers, notes today's announcement of Lenta Ltd. ("Lenta") regarding an update on the proposed cash offer by Severgroup LLC for Lenta, which mentioned Magnit's interest in a possible transaction with Lenta. Magnit confirms that it was exploring a possible acquisition of 100% of Lenta's business. However, the Company was surprised that Lenta's announcement stated that Magnit failed to provide precision around the structure, timing and deliverability of such acquisition, notwithstanding repeated requests from Lenta's independent directors. In fact, Magnit contacted Lenta and showed serious interest to engage on March 11th and again on March 18th when Magnit sent a formal proposal to Lenta. Lenta replied to the proposal only on March 28th and requested further details. Magnit replied within two business days on April 1 with proposed deal structure and terms including price. Lenta did not reply to Magnit's April 1 letter. Magnit is looking forward to receive a response from Lenta and will then consider how it intends to proceed.
No assurances can be given that any transaction will be progressed or as to the terms on which it may be made. A further announcement will be made if and when appropriate.
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Note to editors:
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, 2018, Magnit operated 37 distribution centers and 18,399 stores (13,427 convenience, 467 supermarkets and 4,505 drogerie stores) in 2,976 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS results for 2018, Magnit had revenues of RUB 1,237 billion and an EBITDA of RUB 90 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.