Press-release
Krasnodar
September 13, 2016
Magnit Announces EGM Results
Krasnodar, Russia (September 13, 2016): Magnit PJSC, one of Russia's leading retailers (the "Company"; MOEX and LSE: MGNT), announces the results of the Extraordinary General Shareholders Meeting and the dividend payment.
Type of the general meeting (annual (ordinary), extraordinary) - extraordinary general shareholders meeting;
Form of the general meeting - absentee voting.
Date, venue and time of the general meeting:
Voting ballots acceptance deadline: September 8, 2016.
Address to which the completed voting ballots were delivered: 15/5 Solnechnaya street, Krasnodar, 350072, Russia.
Quorum of EGM:
Number of votes on the Company's voting shares on each agenda item of the AGM, determined in accordance with the provisions of the clause 4.20 of the Regulations on the additional requirements to the procedure of preparation, calling and holding of the general shareholders meeting, approved by the order of the Federal Financial Markets Service of Russia as of February 2, 2012, No. 12-6/pz-n:
on the agenda item No.1 "Payment of dividends on PJSC "Magnit" shares following the first half of 2016 reporting year results" - 94,561,345 votes;
on the agenda item No.2.1 "Approval of the major related party transactions" - 93,753,527 votes;
on the agenda item No.2.2 "Approval of the major related party transactions" - 93,753,527 votes;
on the agenda item No.3 "Approval of the Charter of PJSC "Magnit" in a new edition" - 94,561,345 votes.
Number of votes of shareholders who participated in the general meeting:
on the agenda item No.1 "Payment of dividends on PJSC "Magnit" shares following the first half of 2016 reporting year results" - 72,782,522 votes;
on the agenda item No.3 "Approval of the Charter of PJSC "Magnit" in a new edition" - 72,782,522 votes.
Number of votes of shareholders who participated in the general meeting and are not interested in execution of transactions by the company:
on the agenda item No.2.1 "Approval of the major related party transactions" - 71,974,704 votes;
on the agenda item No.2.2 "Approval of the major related party transactions" -71,974,704 votes.
Quorum is present to adopt the decisions on all the agenda items of the extraordinary General shareholders meeting of PJSC "Magnit".
Agenda:
1. "Payment of dividends on PJSC "Magnit" shares following the first half of 2016 reporting year results".
2. "Approval of the major related party transactions".
3. "Approval of the Charter of PJSC "Magnit" in a new edition".
Voting results:
On the 1st agenda item "Payment of dividends on PJSC "Magnit" shares following the first half of 2016 reporting year results":
«for» - 72,762,813 votes, which amounts to 99.9729% of the total votes of the shareholders participated in the general meeting and entitled to vote on this item;
«against» - 0 votes, which amounts to 0.0000% of the total votes of the shareholders participated in the general meeting and entitled to vote on this item;
«abstained» - 863 votes, which amounts to 0.0012% of the total votes of the shareholders participated in the general meeting and entitled to vote on this item.
Adopted decision:
"To pay dividends on PJSC "Magnit" ordinary registered shares following the first half of 2016 reporting year results in the amount of 7,999,890,633 rubles (seven billion nine hundred and ninety nine million eight hundred and ninety thousand six hundred and thirty three rubles), which amounts to 84.60 rubles (eighty four rubles sixty kopecks) per share.
To appoint the following dividend record date: September 23, 2016.
The payment of dividends shall be effected in monetary funds in accordance with the procedure and within the time limit established by the legislation of the Russian Federation".
On the agenda item 2.1 "Approval of the major related party transactions":
«for» - 71,901,998 votes, which amounts to 76.6926% of the total votes of the shareholders not interested in the transaction executed by the Company;
«against» - 0 votes, which amounts to 0.0000% of the total votes of the shareholders not interested in the transaction executed by the Company;
«abstained» - 53,860 votes, which amounts to 0.0574% of the total votes of the shareholders not interested in the transaction executed by the Company.
Adopted decision:
"To approve the loan agreement (several related loan agreements), which the Company plans to execute in future with Joint Stock Company "Tander" and which is a major related party transaction with the following essentials:
1. Parties of the transaction (transactions): the lender - PJSC "Magnit", the borrower - JSC "Tander";
2. Subject of the transaction (transactions): loan of funds;
3. Maximum price (amount) of the transaction (transactions): up to 62,000,000,000 (Sixty two billion) rubles;
4. Loan interest rate (per annum): not more than 125 (One hundred and twenty five) percent of the key interest rate of the Bank of Russia (published on the official website of the Bank of Russia on the Internet (www.cbr.ru)) as of the loan issue date;
5. Time limit for the fulfillment of obligations under the transaction (transactions): up to 3 (Three) years from the time of its execution (the time of repayment of the loan amount and interest).
The price (money value) of the Company's property, which can be directly or indirectly disposed by the Company under the loan agreement (several related loan agreements), can amount to 25 and more percent of the book value of the Company's assets, determined from the data of its accounting (financial) statements as of the last reporting date, but not more than 50 percent of the book value of the Company's assets, determined from the data of its accounting (financial) statements as of the last reporting date.
Hereby to provide the Chief Executive Officer of PJSC "Magnit" with the right to sign the additional agreements to the loan agreement (several related loan agreements) which change the loan conditions, including but not limited to the change of the interest rates, loan amount and period of the loan provision within the limits hereof".
On the agenda item 2.2 "Approval of the major related party transactions":
«for» - 71,904,634 votes, which amounts to 76.6954% of the total votes of the shareholders not interested in the transaction executed by the Company;
«against» - 0 votes, which amounts to 0.0000% of the total votes of the shareholders not interested in the transaction executed by the Company;
«abstained» - 51,154 votes, which amounts to 0.0546% of the total votes of the shareholders not interested in the transaction executed by the Company.
Adopted decision:
"To approve the guarantee agreement (several related guarantee agreements), which the Company plans to execute in future as security for obligation of Joint Sstock Company "Tander" (beneficiary) (hereinafter - the Borrower) to Public Joint Stock Company "Sberbank of Russia" (hereinafter - the Creditor) under the agreements on the opening of revolving / non-revolving credit line and (or) under the General agreements on the opening of the revolving framework credit line with tiered interest rates (hereinafter - the Agreements), which the Borrower plans to execute in the future, and which is a related party transaction with the following essentials:
1. Under the Agreements the Creditor and the Borrower shall conclude separate credit transactions (hereinafter - the Credit transactions) by signing confirmations containing essential terms and conditions of the Credit transaction;
2. The total credit limit under the Agreements shall not exceed 28,000,000,000 (Twenty eight billion) rubles;
3. The credit term under each Credit transaction shall not exceed 4 (Four) years;
4. The interest rate for the credit use shall not exceed 30 (Thirty) percent per annum. The Creditor has a right to unilaterally increase/decrease the interest rate under the Agreements and/or under the Credit transactions concluded within the Agreements;
5. Terms, procedure of granting and repayment of the credit amounts, interest and other payments shall be determined by the Agreement;
6. Maximum price (amount) of the guarantee agreement: the total amount of obligations of the Guarantor shall not exceed 61,600,000,000 (Sixty one billion and six hundred million) rubles.
The price (money value) of the Company's property, which can be directly or indirectly disposed by the Company under the guarantee agreement (several related guarantee agreements), can amount to 25 and more percent of the book value of the Company's assets, determined from the data of its accounting (financial) statements as of the last reporting date, but not more than 50 percent of the book value of the Company's assets, determined from the data of its accounting (financial) statements as of the last reporting date.
Hereby to provide the Chief Executive Officer of PJSC "Magnit" with the right to sign the additional agreements on amendments to the guarantee agreement (several related guarantee agreements) related to changes of the Agreements terms and conditions, including but not limited to change of the interest rates, credit amount and period of the credit provision within the limits hereof".
On the 3rd agenda item "Approval of the Charter of PJSC "Magnit" in a new edition":
«for» - 72,300,815 votes, which amounts to 99.3382% of the total votes of the shareholders participated in the general meeting and entitled to vote on this item;
«against» - 379,635 votes, which amounts to 0.5216% of the total votes of the shareholders participated in the general meeting and entitled to vote on this item;
«abstained» - 83,156 votes, which amounts to 0.1143% of the total votes of the shareholders participated in the general meeting and entitled to vote on this item.
Adopted decision:
"To approve of the Charter of PJSC "Magnit" in a new edition".
The minutes w/o No. are executed as of September 12, 2016.
Identification characteristics of securities the holders of which are entitled to participate in the general shareholders meeting of the issuer: ordinary registered uncertified shares, state registration number
1-01-60525-P of 04.03.2004, International Securities Identification Number (ISIN) RU000A0JKQU8.
For further information, please contact:
| Timothy Post | Head of Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 |
| Investor Relations Office | MagnitIR@magnit.ru Direct Line: +7-861-277-4562 Website: ir.magnit.com/ |
| Media Inquiries | Media Relations Department press@magnit.ru |
Company description:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2016, Magnit operated 34 distribution centers and 12,888 stores (9,902 convenience, 398 hypermarkets and 2,588 drogerie stores) in 2,397 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the reviewed IFRS consolidated financial statements for 1H 2016, Magnit had revenues of RUB 522 billion and an EBITDA of RUB 52 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: 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.
