VTB Group announces sale of its stake in Magnit

дата19.11.2021

VTB Group announces the sale of approximately 17.28% of ordinary shares of PJSC “Magnit” (“Magnit” or the “Company”). Approximately 4.9% has been offered through an accelerated bookbuilding process (the “Offering”). The Offering price was set at RUB 5,700 per share. The remaining approximately 12.4% of the Company’s shares will be sold to Marathon Group at the price determined in the Offering (the “Private Sale” and together with the Offering, the “Transaction”).

Details of the Transaction:

  • The Offering consists of the sale of approximately 4.9% of shares of PJSC “Magnit”
  • Selling shareholder is LLC “VTB Infrastructure Investments”, a wholly-owned subsidiary of VTB Bank (PJSC)
  • The Offering price was set at RUB 5,700 per share
  • Remaining approximately 12.4% of the Company’s shares will be sold to Marathon Group at RUB 5,700 per share. As a result of the Transaction, VTB Group will fully divest its stake in PJSC “Magnit”, while Marathon Group will increase its stake in the Company to approximately 29.2%, becoming the largest shareholder of Magnit. The Transaction structure contemplates that voting rights with respect to approximately 4.2% of PJSC “Magnit” shares currently pledged under a repurchase agreement will be transferred to Marathon Group following the receipt of the requisite approval from the Federal Antimonopoly Service. Marathon Group intends to apply for such approval following the Transaction. Until then, Marathon Group will hold voting rights with respect to 25% of PJSC “Magnit” share capital
  • VTB Capital acted as a sole global coordinator and bookrunner of the Offering and as a financial adviser with respect to the Private Sale

IMPORTANT NOTICE

This press release is an advertisement and not a prospectus and does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, any securities of Public Joint Stock Company “Magnit” (the “Company” and, the “Securities”, as applicable) or rights to subscribe for the Securities to any person in Australia, Canada, Japan, the United States or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended (the “Securities Act”) or another exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the Securities may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the Securities have not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the Securities in the United States.

Any investment decision to purchase Securities must be made solely on the basis of the publicly available information regarding the Company. Such information is not the responsibility of VTB Capital plc, VTB Bank (PJSC), LLC “VTB Infrastructure Investments” or Marathon Group and has not been independently verified by VTB Capital plc, VTB Bank (PJSC), LLC “VTB Infrastructure Investments” or Marathon Group.

This press release is being distributed to and directed at persons in member states of the European Economic Area (“EEA”) who are “qualified investors” within the meaning of Article 2(e) of Regulation (EU) 2017/1129 and amendments thereto (the “Prospectus Regulation”) (“Qualified Investors”).

In addition, in the United Kingdom, this press release is being distributed to and is directed only at persons who are “qualified investors”, within the meaning of Article 2(e) of the EU Prospectus Regulation as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal Act) 2018 who are (i) persons who have professional experience in matters relating to investments who fall within the definition of “investment professionals” as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order or (iii) other persons to whom an invitation or inducement to engage in investment activity (within the meaning of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “Relevant Persons”).

This communication does not constitute an offer of the securities referred to herein to the public in the United Kingdom and investment or investment activity, or controlled investment or controlled activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons in the United Kingdom and Qualified Investors in any member state of the EEA. No person that is not a Relevant Person should or Qualified Investor may act or rely on this press release or any of its contents.

Solely for the purposes of the product governance requirements contained within (a) Regulation (EU) 600/2014 as it forms part of domestic law in the United Kingdom by virtue of the EUWA (“U.K. MiFIR”); and (b) the FCA Handbook Product Intervention and Product Governance Sourcebook, (together, the “U.K. MiFIR Product Governance Rules”) and/or Article 9(8) of Commission Delegated Directive 2017/593 (the “Delegated Directive”) regarding the responsibilities of Manufacturers under the Product Governance Requirements contained within: (a) Directive 2014/65/EU on markets in financial instruments as amended (“MiFID II”); (b) Articles 9 and 10 of the Delegated Directive; and © the local implementing measures (the “MiFID II Product Governance Requirements”), the Securities the subject of the Offering have been subject to a product approval process, which has determined that such Securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in the FCA Handbook Conduct of Business Sourcebook; and (ii) eligible for distribution through all permitted distribution channels (the “Target Market Assessment”). Notwithstanding the Target Market Assessment, “distributors” (for the purposes of the UK Product Governance Requirements and/or the MiFID II Product Governance Requirements, in each case to the extent applicable) should note that: the price of the Securities may decline and investors could lose all or part of their investment; the Securities offer no guaranteed income and no capital protection; and an investment in the Securities is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Offering. Furthermore, it is noted that, notwithstanding the Target Market Assessment, VTB Capital plc will only procure investors who meet the criteria of professional clients and eligible counterparties. Each distributor is responsible for undertaking its own target market assessment in respect of the Securities and determining appropriate distribution channels.

These materials do not contain or constitute an offer, or an invitation to make offers, sell, purchase, exchange or transfer any Securities in the Russian Federation, and do not constitute an advertisement of any Securities in the Russian Federation. This communication does not constitute or form part of individual investment advice, investment consulting or personal recommendation (within the meaning of the federal legislation of the Russian Federation (including, without limitation, Federal Law dated April 22, 1996 No. 39-FZ “On the Securities Market”, as amended)).

None of VTB Capital plc, VTB Bank (PJSC), LLC “VTB Infrastructure Investments” or Marathon Group nor any of their respective affiliates, directors, officers, employees, advisers, agents or any other person, accepts any responsibility or liability whatsoever for the contents of, or makes any representations or warranties, express or implied, as to the accuracy, fairness or completeness of the information presented or contained in this press release (or whether any information has been omitted from this press release) or any other information relating to the Company, its subsidiaries and their associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this press release or its contents or otherwise arising in connection therewith.

VTB Capital plc is acting exclusively for LLC “VTB Infrastructure Investments” and no one else in connection with the matters referred to in this press release, and will not regard any other person as their respective clients in relation to the matters referred to in this press release and will not be responsible to anyone other than LLC “VTB Infrastructure Investments” for providing the protections afforded to their respective clients nor for providing advice in relation to the matters referred to in this press release, the contents of this press release or any transaction, arrangement or other matter referred to herein.

Certain statements in this communication are not historical facts and are “forward looking” within the meaning of Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward looking statements include statements concerning our plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, financial position and future operations and development, our business strategy and the trends we anticipate in the industries and the political and legal environment in which we operate and any other information that is not historical information. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward looking statements. We do not intend and we do not assume any obligation to update any forward looking statement contained herein.

Reference

NEITHER THIS ANNOUNCEMENT NOR THE INFORMATION CONTAINED HEREIN IS FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR TO ANY PERSON IN ANY OF THOSE JURISDICTIONS OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE LAWS OF SUCH JURISDICTION.