Magnit Announces Offering Price at USD 85 per Ordinary Share
OREANDA-NEWS. December 2, 2011. OJSC "Magnit" (the "Company"; RTS, MICEX and LSE: MGNT) announces commencement of the placement of its newly issued ordinary shares in the share capital of the Company (the "New Shares") and the offer price of the New Shares including under an accelerated bookbuilt placing to Russian and international institutional investors (the "Placement").
Name of Issuer
Open Joint Stock Company "Magnit," a company incorporated and existing under the laws of the Russian Federation with its registered address at 18 Kolkhoznaya street, Krasnodar, Krasnodar region, Russian Federation.
Summary of the Placement
The offer price in the Placement has been set at USD 85 per New Share or, if the payments are to be made in roubles, they shall be made at an exchange rate of USD 1 = RUB 30.8486.
Investors have indicated their willingness to acquire a total of 4,117,648 New Shares in the Placement, resulting in gross proceeds to the Company of approximately USD 350 million from the Placement.
In connection with the Placement, the Company has authorized and registered with the Russian Federal Financial Market Service ("FFMS") the issue of 10,813,516 New Shares to be placed through an open subscription that has commenced on December 2, 2011. The Company's shareholders of record as of October 6, 2011 have statutory pre-emptive rights under Russian law to subscribe for the New Shares pro rata to their existing shareholdings as of that date. Such shareholders have submitted indications to subscribe for 2,596,333 New Shares through the exercise of pre-emptive rights. Assuming that payment is made for all New Shares being subscribed for through the exercise of pre-emptive rights, a total of 6,713,981 New Shares will be issued and the Company will receive aggregate gross proceeds from the issuance of the New Shares (including the Placement) of approximately USD 571 million resulting in a free float of approximately 51% of the Company's issued share capital.
The Company intends to use the net proceeds it receives from the issuance of the New Shares (including from the Placement) to finance its capital expenditure program aimed for further expansion of its chain of hypermarkets as well as the expansion of its convenience store operations and the further development of its logistics capabilities.
After filing of the placement notification with the FFMS (the "Placement Notice") takes place, which is expected to occur on or about 15 December 2011, application will be made by the Company to list or have the New Shares admitted to trading on MICEX and RTS or MICEX only, as the case may be, following the completion of the combination of MICEX and RTS. Following such listing or admission to trading after the filing of the Placement Notice with the FFMS, and receipt of a notification from the FFMS cancelling the separate registration number of the New Shares, which is expected to occur three months and 14 days after the date of the filing of the Placement Notice, the New Shares are expected to be traded on MICEX under the symbol "MGNT". For so long as the New Shares have a separate registration number required under Russian securities laws they will not be fully fungible with the existing ordinary shares (the "Existing Shares"), and it will not be possible to deposit the New Shares into the Company's Global Depositary Receipt ("GDR") facilities against issuance of GDRs. Once the New Shares bear the same registration number as the Existing Shares, if it is determined that the prior publication of a prospectus is required, it will not be possible for shareholders to deposit any ordinary shares into the GDR facilities against issuance of GDRs until such time as a prospectus has been published. In such a case the Company will consider publication of a prospectus. The deposit of ordinary shares against the issue of GDRs is also subject to Russian regulatory limitations on the number of shares that may be deposited into the GDR facilities, as well as the terms and conditions of the GDR facilities.
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