The large Russian retailer Magnit has developed a proposal for non-resident investors, according to which Magnit Alliance LLC intends to buy up to 10% of the shares of the retail chain for half the price compared to the market price: 2 ,2 thousand rubles per share listed on the Moscow exchange at the level of 4.5 thousand rubles.
Such a price difference is a consequence of the standard requirements of the government commission for the control of foreign investment in the Russian Federation when agreeing transactions for the withdrawal of non-residents from Russian assets. The public offer is aimed at them, says Interfax.
The expected repurchase volume is 10 million 191 thousand 135 shares, but if the investor request is higher, the company will satisfy the requests “in proportion”.
The company separately notes that the offer is especially beneficial to shareholders “who currently do not have the opportunity to participate in trading in the company’s shares”:
“The government commission decision, received pursuant to Magnit Alliance LLC’s request, provides for significant exceptions to the existing restrictions for holders of shares locked up under this public offering. Such shareholders will be able to receive funds from the sale of shares in Russian rubles, or in US dollars, euros or yuan to bank accounts in Russia or abroad, ”the press service of the Interfax corporation quotes.
Experts suggest that the offer is tacitly addressed, among other things, to JPMorgan Chase Bank NA, which participates in Magnit share deposit programs (now the depository receipts are being converted to common shares due to the introduction of legal provisions relevant).
Requests for the redemption of “Magnit” shares will be accepted until July 19, the results of the offer will be announced on July 26. The calculations, if all goes according to plan, will be made before August 9. At the same time, residents of the Russian Federation can also participate: formally, there are no restrictions.
Magnit hopes to maintain public company status with a share listing on the Moscow Stock Exchange. Today the company is the leader in terms of the number of stores and the second largest retailer in Russia in terms of revenue.
In May, it became known that the chain also plans to create a marketplace for the sale of non-food products Magnit Market based on Magnit Cosmetics and Magnit Apteka.
Author:
Ekaterina Alipova
Source: RB
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