Become a Member

Track your favourite stocks
Create & monitor portfolios
Daily portfolio value

Company	Chg	Chg %
Quickpicks
£	%
Add shares to your quickpicks to display them here!

Execution of the Related Party Transaction

25th Feb 2016 14:20

PJSC MAGNIT - Execution of the Related Party Transaction

PR Newswire

London, February 25

Press-release

Krasnodar

February 25, 2016

PJSC “Magnit” Announces the Execution of the Related Party Transaction

Krasnodar, February 25, 2016: PJSC “Magnit”, Russia’s largest food retailer (the “Company”, the “Issuer”; MOEX and LSE: MGNT), announces the execution of the transaction on February 25, 2016.

Type of transaction: related party transaction, material transaction which is not major.

Subject of transaction: Provision by the Issuer of the guarantee under the ?redit agreement as of February 25, 2016 (hereinafter – the “Credit agreement”) executed between Public Joint Stock Company ROSBANK (hereinafter – the “Creditor”) and JSC “Tander” (hereinafter – the “Borrower”).

Content of transaction:

In accordance with the guarantee agreement the Guarantor shall be fully liable to the Creditor jointly with the Borrower for the proper fulfillment of obligations by the Borrower under the Credit agreement executed on the following essentials:

- the Creditor shall provide the Borrower with monetary funds in Russian rubles, in US dollars, in Euros;

- the maximum amount of the aggregate debt is 18,000,000,000 (Eighteen billion) Russian rubles or the equivalent of this amount in US dollars or Euros at the exchange rate of the Bank of Russia;

- each credit shall be provided for the period additionally approved by the Creditor and the Borrower immediately prior to the provision of the credit, while the term of each provided credit shall not exceed 12 (Twelve) calendar months from the date of the credit provision to the Borrower, and the date of repayment of any credit shall not be later than February 22, 2017;

- the interest rate for the use of each credit provided under the Credit agreement shall be additionally approved by the Creditor and the Borrower immediately prior to the provision of the credit, while the approved interest rate shall not exceed 30 (Thirty)% per annum; - in case of the use of the credits after the credits payment period(s) specified by the Credit agreement, the Borrower shall pay the penalty to the Creditor in the amount of the overdue indebtedness for the whole overdue period in the amount of the dual key rate of the Bank of Russia, effective as of the correspondent period for every day of delay in payment in percent per annum. Other conditions, procedure of granting and repayment of the credit, interest and other payments shall be determined by the Credit agreement. The Guarantor shall be liable to the Creditor for the fulfillment of all obligations by the Borrower under the Credit agreement, including the repayment of the principal amount of debt, payment of interest for the use of credits, interest for the late payment of interest for the use of credits and other losses of the Creditor from the non-fulfillment or improper fulfillment of obligations by the Borrower under the Credit agreement within the limit of the Guarantor’s liability in the amount not exceeding 23,400,000,000.00 (Twenty three billion four hundred million) rubles. In case of non-fulfillment or improper fulfillment of obligations by the Guarantor within the term specified by the Credit agreement, the Guarantor shall pay the penalty to the Creditor for the whole overdue period in the amount of the dual key rate of the Bank of Russia, effective as of the correspondent period for every day of delay in payment in percent per annum.

Deadline for the fulfillment of the obligation: The guarantee is provided for the period until February 22, 2019.

Parties and beneficiaries under transaction: The creditor – Public Joint Stock Company ROSBANK The guarantor – Public Joint Stock Company “Magnit” The borrower (beneficiary) – Joint Stock Company “Tander”

The amount of the transaction in the monetary value and as a % of the asset value of the issuer: 23,400,000,000.00 rubles which amounts to 20.8854% 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: 112,040,106 thousand rubles

Date of the transaction execution: February 25, 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: [email protected] Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562
Investor Relations Office	[email protected] Direct Line: +7-861-277-4562 Website: ir.magnit.com/
Media Inquiries	Media Relations Department [email protected]

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 December 31, 2015, Magnit operated 33 distribution centers and 12,089 stores (9,594 convenience, 374 hypermarkets, and 2,121 drogerie stores) in 2,361 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS management accounts 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.

Related Shares:

FTSE 100 Latest

Value10,402.44

Change-69.67