November 14, 2017 / 4:52 PM / 2 years ago

BRIEF-Russia's Magnit announces ‍launch of share sale

Nov 14 (Reuters) - Russia’s Magnit says:

* Shareholder Lavreno Limited (the “selling shareholder”) has initiated the process for the sale of approximately $700 million worth of ordinary shares in the company owned by Lavreno in the form of local rouble-denominated shares;

* It is intended that after the sale the company will increase its share capital through an offering of newly issued shares in an open subscription;

* Subject to availability after the exercise of the pre-emptive rights by other shareholders, Lavreno intends to use all of the proceeds from its sale to purchase the new shares and has indicated the intention to purchase an additional 250,000 of new shares from Magnit;

* The company intends to use the proceeds from the additional share issue to finance its store roll-out programme, store renovation programme and vertical integration programme;

* Portion of the proceeds may also be used by the company to optimise net indebtedness position;

* In connection with the sale, shares in the company are being offered by way of an accelerated bookbuild. Merrill Lynch and VTB Capital are acting as joint global coordinators and joint bookrunners in connection with the deal;

* Sergey Galitskiy has made clear his intention to remain a long-term strategic investor in the company. Source text for Eikon: Further company coverage: (Reporting by Polina Devitt Editing by Greg Mahlich)

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