2nd Jul 2009 07:00
Press-releaseKrasnodarJuly 2, 2009
OJSC "Magnit" announces the results of related party transaction made by the company, the approval of which by the authorized management body of the company is required according to the legislation of the Russian Federation if the price of such transaction exceeds 5 and more per cent of the balance sheet value of the company's assets
Krasnodar, July 2, 2009: OJSC «Magnit» (the "Company"; RTS, MICEX and LSE: MGNT) is pleased to announce the results of the related party transaction.
Date of transaction: July 01, 2009
Parties of transaction:
The Lender - commercial joint-stock bank "Bank Societe Generale Vostok" (close joint-stock company);
The Guarantor - open joint-stock company «Magnit»
The beneficiary: close joint-stock company «Tander» (hereinafter - the Borrower).
Subject of transaction: provision of security in the form of guarantee under which the Guarantor shall be responsible to the Lender free of charge for the default on the Borrower's obligations under the Contract of revolving credit line № 090701/0249018 made between the Borrower and the Lender in Krasnodar on July 01, 2009 under the following conditions:
- The Lender shall present to the Borrower the monetary funds in the form of Individual Credits in the amount, under conditions and terms specified in the Credit Contract, Credit Agreements and Notifications on agreed interest rate, and the Borrower shall repay to the Lender the obtained Individual Credits, pay interests and fulfill other obligations under the Credit Contract in full. The maximum limit of the non-recurrent indebtedness under the Individual Credits in rubles, US dollars or euro (Credit line limit) shall not exceed at any date of Credit Line Period from the date of signing of the Contract (inclusive) 1,000,000,000 (one billion) rubles or the equivalent of the indicated amount in US dollars or euro at the rate of Bank of Russia.
- interest rate on credit shall not exceed 35% (thirty five) per cent per year;
- the credit expiry date is July 01, 2010 (inclusive).
Price of transaction: the Guarantor is absolutely, irrevocably and jointly responsible to the Lender in case of default on or improper fulfillment of the Borrower's obligations under the Credit Contract, including repayment of the principal amount, fees, compensation of all expenses, including, but not limited to Lender's expenses on debt recovery and realization of pledged property for security of the Borrower's obligations under the Credit contract and compensation of other losses of the Lender, including lost profits, resulted from default on or improper fulfillment of the Borrower's obligations under the Contract
Information on the approval of transaction by authorized body of the company (name of authorized body and date of decision): the transaction was approved by the extraordinary general shareholders' meeting of OJSC "Magnit" on 20.01.2009, minutes of meeting w/o No dated 27.01.2009
For further information, please contact:
|
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 |
|
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, 2008 the chain consisted of 2,568 convenience stores and 14 hypermarkets in 856 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, 2008 the Company operated an in-house logistics system consisting of 9 distribution centers, employing automated stock replenishment systems and a fleet of 1,165 vehicles.
In accordance with the audited IFRS consolidated financial statements for 2008, the Company posted consolidated revenues of approximately US$ 5,348 million and a consolidated EBITDA of around US$ 402 million
Related Shares:
MGNT.L