Magnit begins buyback program, will conclude it no later than Dec 28
MOSCOW. Sept 5 (Interfax) - Russian retailer Magnit will conduct a share buyback program from September 5 to December 28 to ensure that sufficient shares are available to carry out obligations under a long-term incentive program (LTIP) for management, the company said in a statement.
"The program will commence on September 5, 2018 and will end no later than December 28, 2018," the statement said.
The volume of the buyback program will total up to 16.5 billion rubles.
Magnit subsidiary JSC Tander has entered into an agreement with Renaissance Broker LLC to conduct the program on its behalf.
Renaissance will purchase Magnit ordinary shares for its own account (i.e. as principal) and sell them on to Tander at a price linked to the average price on the Moscow Exchange for the buyback period, determined in accordance with terms agreed between Tander and Renaissance. Renaissance will make its trading decisions in relation to the purchase of Magnit's ordinary shares independently of, and uninfluenced by, the company and Tander.
"The sole purpose of the programme is to help ensure that Tander has sufficient shares to meet any obligations to deliver shares that may arise under the proposed long-term incentive plan (LTIP)," the statement said.
The precise number of shares which the retailer will purchase will depend on share price dynamics and market conditions. The maximum purchase price for one share totals 4,930 rubles, calculated as the price at close of trading on the Moscow Exchange on August 20 plus 20%.
The retailer will finance the buyback via free cash flow.