Magnit PJSC: Magnit will acquire the leasehold rights for Evroros stores in Murmansk

MAGNIT PJSC (MGNT) 
Magnit will acquire the leasehold rights for Evroros stores in Murmansk 
 
24-Jul-2020 / 13:40 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
                                   Press-Release | Krasnodar | July 24, 2020 
 
     Magnit will acquire the leasehold rights for Evroros stores in Murmansk 
 
Krasnodar, July 24, 2020: Magnit PJSC (MOEX and LSE: MGNT; hereinafter - the 
"Company" or "Magnit"), one of Russia's leading retailers, announced that it 
   has reached an agreement to acquire long-term leasehold rights for the 89 
     stores currently operating under Evroros, Yablochko, and Tvoy brands in 
                                               Murmansk and Murmansk region. 
 
   Fifty-five stores are located in Murmansk, with the remaining ones spread 
 across 11 cities of Murmansk region, including Apatity, Kovdor, Kandalaksha 
and others representing in total 52.7 thousand sq. m of selling space and 79 
 thousand sq. m. total space. Lease rights are planned to be acquired for up 
                                                                to 15 years. 
 
   All stores are compliant with Magnit format strategy in terms of size and 
        layout, allow to significantly and efficiently build up geographical 
 coverage in the region reinforcing Magnit position on the local market. The 
      Company plans to open 69 Magnit Convenience stores, 18 Magnit Cosmetic 
         stores (where 14 will be open together with convenience in the same 
      locations) and 16 Magnit Family supermarkets. The deal allows to boost 
 Magnit presence in Murmansk and Murmansk region to 235 stores or 97.0 sq. m 
                                      selling space from current 44.3 sq. m. 
 
    All stores will be integrated into existing Magnit operational platform. 
   Magnit plans to keep Evroros' best practices mostly relevant to the local 
  market and is contemplating to keep Evroros banner enjoying high customers 
        awareness and loyalty. The Company is looking to keep Evroros' store 
 employees and potentially capitalize on some local management capabilities. 
 
        According to the reached agreement, the Company plans to acquire the 
leasehold rights in several pools, as far as and subject to successful legal 
                                                and technical due diligence. 
 
 The acquisition of leasehold rights for the final pool is envisaged for the 
fourth quarter 2020. The stores will be redesigned where relevant and put in 
       operations in several stages. The redesign does not imply significant 
     investments and will not affect the 2020 capital expenditures forecast. 
 
     "I'm very pleased announcing our agreement with Evroros. This deal will 
 substantially reinforce Magnit position in the region across all of our key 
    formats. All stores are perfectly located and are very complement to the 
Company's current geographical footprint in Murmansk and Murmansk region. We 
   not only plan to keep Evroros outstanding staff and best local expertise, 
         but to also capitalize on our extensive experience in improving the 
     effectiveness and attractiveness of the overall customer proposition",- 
                             noted Jan Dunning, President and CEO of Magnit. 
 
For further information, please contact: 
 
Dmitry Kovalenko 
 
Director for Investor Relations 
 
Email: [e-mail] 
 
Office: [phone] 
 
Dina Chistyak 
 
Director for Investor Relations 
 
Email: [e-mail] 
 
Office: [phone] x 15101 
 
Media Inquiries 
 
Media Relations Department 
 
Email: [e-mail] 
 
                                                            Note to editors: 
 
   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 March 31, 2020, Magnit operated 38 distribution centres 
  and 20,860 stores (14,594 convenience, 472 supermarkets and 5,794 drogerie 
       stores) in 3,718 cities and towns throughout 7 federal regions of the 
                                                         Russian Federation. 
 
In accordance with the audited IFRS results for FY 2019, Magnit had revenues 
of RUB 1,369 billion and an EBITDA of RUB 147 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. 
 
Forward-looking statements: 
 
 This document contains forward-looking statements that may or may not prove 
  accurate. For example, statements regarding expected sales growth rate and 
   store openings are forward-looking statements. Forward-looking statements 
  involve known and unknown risks, uncertainties and other important factors 
 that could cause actual results to differ materially from what is expressed 
     or implied by the statements. Any forward-looking statement is based on 
information available to Magnit as of the date of the statement. All written 
  or oral forward-looking statements attributable to Magnit are qualified by 
  this caution. Magnit does not undertake any obligation to update or revise 
       any forward-looking statement to reflect any change in circumstances. 
 
ISIN:           US55953Q2021 
Category Code:  MSCU 
TIDM:           MGNT 
LEI Code:       2534009KKPTVL99W2Y12 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   77782 
EQS News ID:    1101159 
 
End of Announcement EQS News Service 
 
 

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July 24, 2020 06:40 ET (10:40 GMT)