29th Jul 2008 07:00
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR into AUSTRALIA, CANADA, JAPAN, The Russian federation OR THE UNITED STATES
This press release is not a prospectus but an advertisement. Investors should not subscribe for any transferable securities referred to in this announcement except on the basis of information in the international prospectus published by OJSC Magnit in connection with an offering of its ordinary shares ("Shares") and global depositary receipts ("GDRs") and the admission of GDRs representing OJSC Magnit's shares to the Official List of the UK Financial Services Authority.
Copies of the Russian statutory prospectus may be obtained at the offices of OJSC Magnit.
Press-releaseKrasnodar
July 29, 2008
Change of assets value and net loss amount*
As compared to 1Q 2008, the assets of OJSC "Magnit" increased in 2Q 2008 by 9,887,927 thousand rubles due to the additional issue of ordinary shares and raising funds from the offering of such shares.
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Date of fact occurrence: July 28, 2008 |
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Value of OJSC "Magnit" assets as of 31.03.2008: 6,193,205 thousand rubles |
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Value of OJSC "Magnit" assets as of 30.06.2008: 16,081,132 thousand rubles |
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Absolute variation of the Issuer's assets value: 9,887,927 thousand rubles |
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Relative variation of the Issuer's assets value: 259.66% |
According to the 1Q 2008 results, the loss amounted to 4,737 thousand rubles. According to the 2Q 2008 results, the loss amounted to 211,624 thousand rubles. Such a decline of financial results is due to the increase of service expenses in connection with the OJSC "Magnit" shares' placement on stock exchange and the increase of management expenses from the primary activity of OJSC "Magnit" in connection with the audit of the business and financial performance of the Company for the year 2007.
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Date of fact occurrence: July 28, 2008 |
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Value of OJSC "Magnit" loss for 1Q 2008: 4,737 thousand rubles |
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Value of OJSC "Magnit" loss for 2Q 2008: 211,624 thousand rubles |
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Absolute variation of the Issuer's net loss amount: 206,887 thousand rubles |
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Relative variation of the Issuer's net loss amount: 4467.47% |
*The figures are counted according to the OJSC "Magnit" report which is made up under RAS, are disclosed according to the Russian legislation and do not characterize the operation of the whole group of "Magnit" companies. For further information, please contact:
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Oleg Goncharov |
Director, Investor Relations e-mail: [email protected] tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5100 Mob.: +7 (903) 411-40 -35 Direct line for investors only: +7 (861) 277-45-62 |
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Dina Chistyak |
Manager, Investor Relations e-mail: [email protected] tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5101 Mob.: +7-961-511-02-02 Direct line for investors only: +7 (861) 277-45-62 |
Company description:
Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company "Magnit" is a holding company for a group of entities that operate in the retail trade under the "Magnit" name. The chain of "Magnit" stores is one of the leading operators in the Russian food retail market. As of December 31, 2007 the chain consisted of 2,194 convenience stores and 3 hypermarkets in more than 700 locations in the Russian Federation.
Approximately two-thirds of the Company's stores are located in cities with a population of less than 500 thousand. Most of its stores are located within the Southern, Central and Volga regions. The Company also operates stores in the North-Western and Urals regions.
As of December 31, 2007 the Company operated an in-house logistics system consisting of 8 distribution centers, employing automated stock replenishment systems and a fleet of 802 vehicles.
In accordance with the audited IFRS consolidated financial statements for 2007, the Company posted consolidated revenues of approximately US$ 3,677 million and a consolidated EBITDA of around US$ 219 million.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.
Neither this press release nor any copy of it may be taken or transmitted, directly or indirectly, into the Australia, Canada, Japan, the Russian Federation or United States. This press release does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor. The offer and the distribution of this press release and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This press release is not an offer for sale of any securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. The Company has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.
This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
Any offer of securities to the public that may be deemed to be made pursuant to this communication in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the "Prospectus Directive") is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive.
Information contained in this press release does not constitute an advertisement of the GDRs in Russia and must not be passed on to third parties or otherwise be made publicly available in Russia. The GDRs have not been and will not be registered in Russia and are not intended for "placement" or "public circulation" in Russia.
Shares in the Company and the GDRs have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan and, subject to certain exceptions, may not be offered or sold within Australia, Canada or Japan or to, or for the account or benefit of, citizens or residents of Australia, Canada or Japan except under circumstances which will result in the full compliance with the applicable laws and regulations promulgated by the relevant regulatory authorities in effect at the relevant time.
Deutsche Bank AG and Morgan Stanley & Co. International plc are acting exclusively for the Company and the Selling Shareholder and no one else in connection with the global offering. They will not regard any other person (whether or not a recipient of this announcement) as their respective clients and will not be responsible to anyone other than Company or the Selling Shareholder for providing the protections afforded to their respective clients nor for giving advice in relation to the global offering, the contents of this announcement or any transaction or arrangement referred to herein.
Related Shares:
MGNT.L