Press-release
Krasnodar
August 28, 2014
OJSC "Magnit" Announces the Execution of the Related Party Transaction
Krasnodar, August 28, 2014: OJSC "Magnit", Russia's largest food retailer (the
"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the
transaction on August 28, 2014.
The essentials of the transaction are as follows:
Type of transaction: Related party transaction
Subject of Provision by the Issuer of the guarantee to the credit
transaction: agreement №133-VKL/KRD-13 , executed between JSC "Tander"
and "Absolut Bank" joint-stock commercial bank (open
joint-stock company) of October23, 2013
Content of the In accordance with the additional agreement №1 of August
transaction: 28, 2014 to the guarantee agreement №133-DP/KRD-13 of
November19 , 2013the guarantor shall be solidarily liable
to the creditor for the obligations of the borrower under
the credit agreement executed on the following terms:
* The creditline limit: 3,200,000,000 (threebillion two
hundred million)rubles
* The granted term of the credit is until October7, 2014
(inclusive)
* The borrower shall pay the interest on credit to the
creditor at the rate determined by the credit
agreement but not exceeding 20% per annum
* The liability of the guarantor is limited by the
amount of 4,000,000,000.00 (fourbillion) rubles
Deadline for the The guarantee is valid until the borrower fulfills
fulfillment of the obligations to the creditor under the credit agreement but
obligation: no longer than 1 (one) year from the credit agreement end
date
Parties and The creditor - "Absolut Bank" joint-stock commercial bank
beneficiaries under (open joint-stock company)
transaction:
The guarantor - open joint-stock company "Magnit"
The borrower (beneficiary) -joint-stock company "Tander"
The Amount of the The liability of the guarantor is limited by the amount of
transaction in the 4,000,000,000.00 rubles which amounts to 5.6831% of the
monetary value and balance sheet assets of the issuer
as a % of the asset
value of the issuer:
Asset value of the 70,383, 864thousand rubles
issuer as of the
closing date of the
accounting period
preceding the
execution of the
transaction:
Date of the August 28, 2014 (the date of the conclusion of the
transaction additional agreement №1 to the guarantee agreement №133-DP
execution: /KRD-13)
Information on the The transaction was approved by the general shareholders
approval of the meetingof May 29, 2014(the minutes of the annual general
transaction: shareholders meeting of OJSC "Magnit" w/o No.of May30, 2014)
For further information, please contact:
Timothy Post Director, Investor Relations
Email: post@magnit.ru
Office: +7-861-277-4554 x 17600
Mobile: +7-961-511-7678
Direct Line: +7-861-277-4562
Dina Svishcheva Deputy Director, Investor Relations
Email: Chistyak@magnit.ru
Office: +7-861-277-45-54 x 15101
Mobile: +7-961-511-0202
Direct Line: +7-861-277-4562
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 June 30, 2014,
Magnit operated 24 distribution centers and over 8,600 stores (7,614
convenience, 226 hypermarkets, and 778 drogeries) in approximately 2,000 cities
and towns throughout 7 federal regions of the Russian Federation.
In accordance with the reviewed IFRS consolidated financial statements for 1H
2014, Magnit had revenues of $9,979 million USD and an EBITDA of $1,045 million
USD. Magnit's local shares are traded on the Moscow Stock Exchange (MICEX:
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.