OJSC 'MAGNIT' (FRA:5M71) Magnit obtains leasehold rights for 56 Edelweiss stores in Kazan

Transparency directive : regulatory news

26/11/2021 07:59

MAGNIT PJSC (MGNT)
Magnit obtains leasehold rights for 56 Edelweiss stores in Kazan

26-Nov-2021 / 09:59 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

MAGNIT obtains leasehold rights for 56 edelweiss stores in kazan

 

Krasnodar, November 26, 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 56 stores currently operating under the Edelweiss brand in Kazan.

The stores are located in Kazan (the fifth largest city in Russia with approx. 1.3 million inhabitants[1]) representing 25 thousand sq. m. of selling space. The lease rights are planned to be obtained for up to 10 years.

As of September 30, 2021, Magnit operated 265 stores in Kazan including 183 convenience stores, 3 supermarkets and 79 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. The lease of former Edelweiss stores will strengthen Magnit's position in the local market and support its continued development.

According to the agreement the Company plans to obtain 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 in several stages under the Magnit brand. In total, the Company plans to open 67 stores in the premises of former Edelweis outlets - 50 convenience stores, 14 drogeries and 3 hard discounters. The stores are scheduled to be opened within 4Q 2021 - 1Q 2022. The redesign will not require significant investment and has no impact on 2021 capital expenditures projections.

«

Andrey Bodrov

Chief Strategy and Investment Officer

»

"This agreement further strengthens our competitive position in the fifth largest city in Russia, expanding our presence in high quality and densely populated areas. These additional stores are highly complementary to our existing portfolio and align with our successful growth strategy which combines new store openings with value accretive market share consolidation opportunities".

 

 

 

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.

 


[1] According to Rosstat as at the beginning of 2021



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.: 127681
EQS News ID: 1252129

 
End of Announcement EQS News Service

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