29th Dec 2008 09:00
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA
PIK GROUP ("PIK" or "the Company")
RUSSIAN GOVERNMENT DECLARES
SUPPORT FOR PIK GROUP
(LONDON, 29 December 2008) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, today announces that the company has been included on the list of strategically important companies able to count on state support.
The list of the companies that are a priority for state support was prepared by the Government of the Russian Federation on the instructions of the Chairman of the Government of the Russian Federation, Vladimir Putin.
This list includes companies from different industries which the government believes are vital to increasing the sustainability of Russian economic development. Specific criteria were set for inclusion, among them: revenues - over RUB 15 BN, number of employees - at least 4,000 persons, strategic importance of the company and contribution to federal tax revenues. Companies from the list can count on loan financing under state guarantees, interest rate subsidies, additional equity capitalization, deferred tax payments, government contracts and tariff support.
Artem Eyramdzhants, First Vice President of PIK Group, described this as a positive development for the company in general, its customers, partners and employees as it means that the company now has assurances that, if necessary, it can access a package of financial support from the State.
Enquiries:
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Investors |
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PIK Group |
Tel: +7 495 505 97 33 ext. 1358 |
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Viktor Szalkay |
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Media |
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PIK Group |
Tel: +7 495 232 11 22 |
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Natalia Konovalova |
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Citigate Dewe Rogerson |
Tel: +44 20 7638 9571 |
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Tom Baldock |
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Lindsay Noton |
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 PIK. 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. These statements are only predictions and actual events or results may differ materially. PIK does not intend to or undertake any obligation 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 PIK's projections or forward-looking statements, including, among others, general economic conditions, PIK's competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to PIK and its operations.
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NOTES TO EDITORS
PIK Group Overview
Founded in 1994, PIK is one of the leading vertically integrated residential developers with presence in over 20 cities across Russia. Its business activities are concentrated in Moscow and the Moscow region with an increasing footprint in many of Russia's other regions. Its principal activity is the development, construction and sale of residential properties in large scale developments targeted primarily at the middle income housing market in Russia.
Since January 1 2004, PIK has completed over 4 million square meters of residential housing, which is equivalent to approximately 58,000 residential units across Russia.
June 1, 2007, the Group completed successful listings on the London Stock Exchange, the RTS and MICEX exchanges in Russia.
PIK Group's website address is: www.pik.ru
Group Financial Summary
Revenue for 2007 rose by 75% and equalled US$2.7 billion, while EBITDA for 2007 amounted to US$939 million. Net profit was US$700 million in 2007 compared to US$ 298 million in 2006.
According to CBRE, an independent appraiser, the combined market value of the Group's properties valued as of January 01, 2008 was $12.3 billion.
Related Shares:
PIK.L