15 Sep 2023 09:35

Magnit buys back 21.5% of shares from foreign investors

MOSCOW. Sept 15 (Interfax) - Magnit , one of Russia's largest food retailers has completed the buyback of shares from shareholders who held them through Euroclear Bank under a tender offer announced in June, purchasing a total of 21,903,163.8 shares representing about 21.5% of all issued and outstanding shares, the company reported on Thursday.

The purchase price for the shares was about 48.5 billion rubles, Magnit said. The tender offer price was set at 2,215 rubles per share, in line with a decision by the Russian government commission on foreign investment that requires a discount of 50% off the market price.

"Therefore, today the Purchaser announces the full completion of the acquisition of Shares under the Tender Offer," including those held through Euroclear, the company said.

"In total, settlement occurred with 189 sellers from 21 countries, including the Baltic countries, the Nordic countries, Singapore, Japan, Canada, Australia, the United States, the United Kingdom, Germany and other jurisdictions. Magnit's GDR program depositary bank, JPMorgan Chase Bank N.A., took part in the Tender Offer as well as international investors, including long-term active management funds, passive index funds / ETFs, hedge funds, pension and sovereign wealth funds, family funds and individual investors," Magnit said.

In early August, Magnit announced the completion of the acquisition of shares from shareholders who held shares through Russian depository and settlement infrastructure. At that time, the company had purchased 16.6% of shares for 37.4 billion rubles.

Magnit said at the time that it planned to carry out another buyback or consider bilateral purchase-sale transactions at the tender offer price.

"The Company is engaged in continuous dialog with its Shareholders who have been unable to participate in this Tender Offer due to various circumstances and, depending on their interest and other factors, the Purchaser may in the future consider various options for structuring the purchase of Shares from Shareholders, including conducting a new tender offer and/or bilateral sale transactions at the Tender Offer Purchase Price (RUB 2,215 per Share)," Magnit said in the statement released on Thursday.

When it announced the tender offer in June, Magnit initially planned to purchase up to 10% of shares from shareholders, but later raised the limit to 29.8%. A month later the company reported that shareholders had tendered 21,905,943.8 shares or 21.5% of the total outstanding for repurchase.