OREANDA-NEWS. June 02, 2011. Open Joint Stock Company “DIXY Group” (“DIXY” or the “Company”), one of Russia's leading retailers of foods and everyday products (MICEX, RTS: DIXY), today announces its intention to proceed with an offering of ordinary shares (the “Offering”).

The Offering

The Offering is expected to comprise an offering of (i) up to 38,750,000 newly issued ordinary shares (the “New Shares”) offered by the Company via open subscription (including commitment of Mercury Group, the Company's main shareholder, to pay for 24,558,614 shares allocated to it via pre-emptive rights) and (ii) up to 1,113,849 treasury shares (the “Treasury Shares”, together with the New Shares, the “Shares”) offered by the Company.


As per the Company’s Board of Directors decision on 1st June 2011 the Offering price is fixed at 391 RUB per Share.

The Offering price will be the same for the shareholders who intend to exercise pre-emptive rights for the New Shares. Pre-emptive shareholders who submitted their bids to acquire the New Shares will have five business days to pay for the New Shares, all such payments must be received by the Company not later than 8 June 2011.

The Shares are being offered in the Russian Federation, to institutional investors outside the Russian Federation and outside the United States in reliance on Regulation S under the U.S. Securities Act of 1933. The Treasury Shares have been admitted to trading and listed on quotation list “B” of the Closed Joint Stock Company “MICEX Stock Exchange” and on the Open Joint Stock Company “Russian Trading System Stock Exchange”, in each case under the symbol “DIXY”. The Offering received all the necessary regulatory approvals, including all the relevant registrations by the Federal Service for the Financial Markets of the Russian Federation.

The Company intends to use the proceeds from the sale of the New Shares to finance acquisition of Victoria Group, for post-integration and general corporate purposes.
VTB Capital is acting as a Sole Global Coordinator and Bookrunner.

Commenting on today’s announcement, Ilya Yakubson, President of DIXY GROUP, said:
“Today’s announcement represents another milestone in the Company’s development. DIXY Group is presented with an opportunity to substantially strengthen its position on an underpenetrated Russian retail market through completion of planned acquisition of Victoria Group. The announced equity offering will be instrumental in achieving that goal and will help us retain one of the leading positions in the industry, thus creating additional value for our shareholders”