1 Jun 2016 14:01
PJSC MAGNIT - Execution of Related Party TransactionPJSC MAGNIT - Execution of Related Party Transaction
PR Newswire
London, June 1
Press-release
Krasnodar
June 1, 2016
PJSC “Magnit” Announces the Execution of the Related Party Transaction
Krasnodar, June 1, 2016: PJSC “Magnit”, Russia’s largest food retailer (the “Company”, the “Issuer”; MOEX and LSE: MGNT), announces the execution of the transaction on June 1, 2016.
| Type of transaction: major related party transaction. | |
| Subject of transaction: Provision by the Issuer of the guarantee under the General agreement No. 29-15/1/691 on the opening of the revolving framework credit line with tiered interest rates as of September 28, 2015 (hereinafter – the “Agreement”) executed between Public Joint Stock Company “Sberbank of Russia” (hereinafter – the “Creditor”) and JSC “Tander” (hereinafter – the “Borrower”). | |
| Content of transaction: | |
In accordance with the guarantee agreement the Guarantor shall be liable to the Creditor for the proper fulfillment of all obligations by the Borrower, both monetary and non-monetary, and obligations that may arise in future under the Agreement on the following essentials: 1. Under the Agreement the Creditor and the Borrower shall execute individual credit transactions (hereinafter – the Credit transactions) by signing confirmations containing essentials of the Credit transaction; 2. The total credit limit amount shall amount to not more than 20,000,000,000 (Twenty billion) rubles; 3. The credit period for any Credit transaction shall not exceed 1,095 (One thousand ninety five) days; 4. The date of full credits repayment under the Credit transactions shall be not later than September 27, 2019; 5. The interest rate for the credit use shall not exceed 23.5 (Twenty three point five) percent per annum. The Creditor shall be entitled to increase/decrease the interest rate unilaterally under the Agreement and/or under the Credit transaction executed as part of the Agreement; 6. The amount of charges paid by the Borrower shall not exceed: - 0.35% of the amount of the Credit transaction upon the payment by the Borrower for reserving, - 0.5% per annum of the amount of credit repaid in advance upon the payment by the Borrower for the early reimbursement of credit. Other conditions, procedure of granting and repayment of the credit, interest and other payments shall be determined by the Agreement. | |
| Deadline for the fulfillment of the obligation: The guarantee is provided for the period until September 27, 2022 inclusive. Before the specified date the Agreement shall terminate after the fulfillment of all obligations by the Borrower under the Agreement and Credit transactions, or after the fulfillment of obligations by the Guarantor under the Agreement, or to the extent otherwise provided by the legislation of the Russian Federation. | |
| The amount of the transaction in the monetary value and as a % of the asset value of the issuer: The limit of the Guarantor’s total liability to the Creditor for the fulfillment of obligations by the Borrower under the Agreement and all Credit transactions shall not exceed 35,000,000,000 (Thirty five billion) rubles which amounts to 31.6803% of the balance sheet assets of the issuer. | |
| Asset value of the issuer as of the closing date of the accounting period preceding the execution of the transaction: 110,478,878 thousand rubles | |
| Date of the transaction execution: June 1, 2016 | |
| Information on the approval of the transaction: The transaction was approved by the extraordinary General Shareholders Meeting of December 22, 2015 (the minutes of the EGM of PJSC “Magnit” w/o No. of December 24, 2015). |
For further information, please contact:
| Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 |
| Investor Relations Office | MagnitIR@magnit.ru Direct Line: +7-861-277-4562 Website: ir.magnit.com/ |
| Media Inquiries | Media Relations Department press@magnit.ru |
Company description:
Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of March 31, 2016, Magnit operated 34 distribution centers and about 12,434 stores (9,715 convenience, 382 hypermarkets, and 2,337 drogerie stores) in 2,385 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS results for 2015, Magnit had revenues of RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are traded on the Moscow Stock 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+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.