DJ Magnit obtains leasehold rights for 58 Radezh stores in Volgograd
MAGNIT PJSC (MGNT) Magnit obtains leasehold rights for 58 Radezh stores in Volgograd 01-Dec-2021 / 09:59 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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MAGNIT obtains leasehold rights for 58 Radezh stores in volgograd
Krasnodar, December 1, 2021: Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announced it has reached an agreement for the long-term leasehold rights for the 58 stores currently operating under the Radezh brand in Volgograd. The move will strengthen Magnit's position in the local market and support its continued development.
The stores are located in Volgograd (41), Volgograd region (15) and Rostov-on-Don region (2) representing in total 22 thousand sq. m. of selling space. The lease rights shall be obtained for 7-10 years.
As of September 30 2021 Magnit operated 265 stores in Volgograd including 194 convenience stores, 13 supermarkets and 58 drogeries. The stores align with the Company's format strategy in terms of size and layout and are located in high quality, densely populated areas. Across the former 58 Radezh stores the Company plans to open 59 Magnit-branded stores including 55 convenience stores and two drogeries, with a further site comprising both formats under one roof.
Per the agreement, the Company plans to obtain the leasehold rights in several stages, subject to successful legal and technical due diligence.
Obtainment of the leasehold rights does not require any regulatory or Magnit's Board approval. The stores will be redesigned where relevant and will become operational under the Magnit brand in several stages. The stores are scheduled to be opened within 4Q 2021 - 1Q 2022. The redesign will not require significant investment and has no impact on the 2021 capital expenditure projections.
FY 2021 Guidance
Following the agreement on Radezh stores as well as other recently announced agreements Magnit upgrades its FY 2021 store opening guidance to around 2,100 stores (gross) of various formats as part of its organic expansion. The Group's full year redesign program (about 700 stores) and capex guidance (RUB 60-65bn)[1] remain unchanged.
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"This agreement is another evidence of our continued accelerated expansion on the Russian market. The
Andrey Bodrov pool of Radezh stores follows our recent transaction with Edelweiss in Kazan. The locations are a good
fit to Magnit store portfolio and will further strengthen our competitive position in the Volga region.
Chief Strategy In addition to the solid organic expansion, Magnit's value accretive M&A activity marks our leadership
and Investment in the market consolidation process".
Officer
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For further information, please contact:
Dina Chistyak
Head of Investor Relations
dina_chistyak@magnit.ru
Office: +7 (861) 210 9810 x 15101
Media Inquiries Twitter
press@magnit.ru @MagnitIR
Note to editors
"Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the
southern Russian city of Krasnodar. As of September 30, 2021, Magnit operated 45 distribution centers and
25,315 stores in 3,840 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts results for 9M 2021, Magnit had revenues of
RUB 1,311.5 billion and an EBITDA of RUB 151.4 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 or may contain forward-looking statements that may or may not prove accurate. For
example, statements regarding expected sales growth rate and/or 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.
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[1] Excluding acquisition of the Dixy retail business
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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.: 127983 EQS News ID: 1253156 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
December 01, 2021 01:59 ET (06:59 GMT)
