Magnit announces board approval of the price change of the acquisition of Dixy
Krasnodar, Russia (September 1, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, today announces Board decision to approve price change of the acquisition of the DIXY retail chain with 2,477 stores in Russia.
The transaction has been approved by Magnit's Board of Directors on May 18, 2021[1]. Russia's Federal Antimonopoly Service announced its clearance to the transaction on July 15, 2021 and all other conditions to closing the deal have been met. The parties have closed the transaction through Magnit's main operating subsidiary JSC "Tander" having acquired 100% of shares in DIXY Holding Limited (Cyprus).
The purchase price at closing amounted to Rub 87.6bn. The Board has approved price of the agreement of up to Rub 97.0bn. Adjustments to the purchase price were made due to changes to the net debt and working capital as per completion accounts and other conditions of the agreement regulating price adjustments.
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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 March 31, 2021, Magnit operated 39 distribution centers and 21,900 stores (15,098 convenience, 471 supermarkets and 6,331 drogerie stores) in 3,770 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS 16 results for FY 2020, Magnit had revenues of RUB 1,553.8 billion and an EBITDA of RUB 178.2 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.
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Forward-looking statements
This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected completion of the transaction, sales growth rate and/or store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.
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[1] https://www.magnit.com/en/disclosure/regulatory-news/#tabs-Disclosure;
