21 Oct 2009 17:53

Magnit shareholders to sell a portion of their stakes in SPO

MOSCOW. Oct 21 (Interfax) - Current shareholders in Magnit plan to offer a portion of their share stakes for sale during a supplementary share placement, the company told Interfax.

Magnit officially announced plans to place supplementary shares on two Russian exchanges, the RTS and MICEX, and on the London Stock Exchange in the form of GDR (one share equals 5 GDR).

"In addition, company shareholders Labini Investments Limited, Lavreno Limited and Vladimir Gordeichuk plan to offer a portion of their shares and GDR for sale," Magnit said in a statement. Those shares will be offered along with up to 11.15 million supplementary shares.

The placement of a portion of existing shareholder stakes is "a component part of the share placement," investor relations director Oleg Goncharov said.

The proceeds from the sale will go to finance further expansion of the retail chain and development of logistics, the statement says.

A source in financial circles told Interfax that Magnit planned to raise "$520-$530 million" with the SPO. He said 70% of the offering would be new shares and 30% existing shares.

"The road show that began on Wednesday ends on October 28, and pricing takes place on October 29," the source said.