Shareholders in Magnit buy 1.5 mln shares in SPO rights offering
MOSCOW. Dec 14 (Interfax) - Shareholders in Russian retailer OJSC Magnit exercised preemptive rights to buy 1,468,634 shares at $85 each for a total of $124.8 million in the rights portion of the company's SPO, the company said in a statement.
The company said 96 shareholders applied to buy 2,562,333 shares in total, and 79, whose applications were met in full or in part, paid for shares.
The price in the rights offering corresponds to the price in the public offering, which is 2,622 rubles a share at an exchange rate of 30.8 rubles a share.
Magnit's shares traded at 2,732 rubles each on the MICEX on Wednesday afternoon. GDRs representing five shares, traded at $19.5 each.
Magnit has said its main shareholders, Sergei Galitsky and Vladimir Gordeichuk, did not plan to subscribe to the SPO.
Investors have expressed readiness to buy the 4,117,648 new shares, so the SPO could net the company around $350 million or, if the 1,468,634 shares bought in the rights offering are included, $475 million.
Magnit's board of directors decided at the start of October to increase the company's charter of capital by placing 10,813,516 additional shares, par value 0.01 rubles, by open subscription. This amounts to 12.1% of the company's capital.
Magnit plans to earmark the funds from the SPO for expanding its hypermarket and neighborhood store chains, as well as future development of its logistics network. The funds raised will allow Magnit to support capex at the upper end of the figure announced for 2012 ($1 billion-$1.4 billion), while holding onto the debt parameters.
Magnit has 88,975,073 issued shares and it is offering 6.3% of them in the SPO, including the shares bought in the rights offering.
The retailer held an IPO in April 2006 on Russian indexes where it raised $368.35 million. An SPO worth $480.25 million was held on the London Stock Exchange in the spring of 2008. Magnit held another SPO in October 2010, selling 5.68 million shares (6% of the expanded charter capital) for $369.2 million.