MGNT.L Regulatory News (MGNT)

PJSC MAGNIT - Correction : BoD Meeting Results

PR Newswire

London, August 2

Due to technical issues, part of the text in the paragraph 1 Item 9 of thepress release “BoD Meeting Results” as of July 27, 2017 was missing.The paragraph shall read as follows: Dividend payment on PJSC “Magnit” ordinaryregistered shares following the results of the 1H 2017 in the total amount of10,922,782,116.05 rubles, which accounts for 115.51 rubles per share.

Press Release

Krasnodar

July 27, 2017

Magnit Announces the Results of the BOD Meeting, Including the Decision to Call the EGM and Determination of the Record Date

Krasnodar, July 27, 2017: Magnit PJSC, one of Russia’s leading retailers (the “Company”, “Issuer”; MOEX and LSE: MGNT), is pleased to announce the results of the BOD meeting held on July 27, 2017.

Please be informed that on July 27, 2017 the BOD meeting was held (minutes of the BOD meeting of PJSC “Magnit” are w/o No. of July 27, 2017).

The meeting agenda:

Calling of the extraordinary general shareholders meeting (“the EGM”) of PJSC “Magnit”.

Approval of the form of holding of the EGM of PJSC “Magnit”.

Determination of the v acceptance

Determination of the postal address to send the filled voting ballots.

Determination of the PJSC “Magnit” EGM record date.

Approval of the agenda of the EGM of PJSC “Magnit”.

Determination of the procedure of notification of shareholders of the holding of the EGM of PJSC “Magnit”.

Determination of the form and the text of the voting ballots on the items to be considered at the EGM of PJSC “Magnit”.

Approval of recommendations to the EGM on the dividend amount on PJSC “Magnit” shares following the results of the 1H 2017, the procedure of its payment and the dividend record date.

Approval of the position of the Board of Directors of PJSC “Magnit” on the agenda of the EGM.

Determination of the list of information (materials) provided to shareholders to prepare to the EGM of PJSC “Magnit”, and the procedure of its provision.

Making a decision for approval of the execution of major transactions.

Determination of the position of PJSC “Magnit” representative at the exercise of the voting right on the JSC “Tander” shares owned by the Company.

Approval of transactions attributed by the Charter of PJSC “Magnit” to the competence of the Board of Directors.

The following BOD members were present: V. Gordeychuk, S. Galitskiy, K. Pombukhchan and A. Shkhachemukov.

A. Aleksandrov, D. Chenikov, and A. Pshenichniy provided their written opinions on the items of the agenda of the BOD meeting of PJSC “Magnit”.

The number of the BOD members participating in the meeting, including written opinions ofA. Aleksandrov, D. Chenikov and A. Pshenichniy amounts to not less than half of the number of the BOD members determined by the Charter of the Company.

Quorum to hold the BOD meeting with this agenda is present.

Voting Results:

Items 1-14:

V. Gordeychuk – “for”, A. Aleksandrov - “for”, S. Galitskiy – “for”, D. Chenikov - “for”, K. Pombukhchan - “for”, A. Pshenichniy – “for”, A. Shkhachemukov – “for”.

The decisions were made.

Content of the decisions and voting results:

Item 1 on the agenda:

“To call the EGM of PJSC “Magnit”.

Item 2 on the agenda:

“To hold the EGM in the form of absentee voting”.

Item 3 on the agenda:

“To determine August 31, 2017 as the deadline of voting ballots acceptance”.

Item 4 on the agenda:

“To determine the postal address to send the filled voting ballots: 15/5 Solnechnaya street, Krasnodar, 350072, Russia”.

Item 5 on the agenda:

“To determine August 7, 2017 as the PJSC “Magnit” EGM record date.

Item 6 on the agenda:

“To approve the following agenda of the EGM of PJSC “Magnit”:

1. “Payment of dividends on PJSC “Magnit” shares following the results of 1H 2017”.

Item 7 on the agenda:

“To approve the text of the announcement of the EGM of PJSC “Magnit” and according to the clause 13.10 of the PJSC “Magnit” Charter to publish this announcement on the official website of the Company on the information and telecommunications network “Internet” in the Russian version at http://ir.magnit.com/tsentr-aktsionera/sobraniya-aktsionerov/, in the English version at http://ir.magnit.com/en/shareholder-center/agm-egm-voting/ by July 31, 2017 inclusive”.

Item 8 on the agenda:

“To approve the form and the text of the voting ballots on the items to be considered at the EGM of PJSC “Magnit”.

Item 9 on the agenda:

“To approve recommendations to the General shareholders meeting of the Company on the dividend amount on PJSC “Magnit” shares following the results of the 1H 2017, the procedure of its payment and the dividend record date.

The recommendations of the PJSC “Magnit” BoD include:

Dividend payment on following of the 1H 2017 in the total amount of 10,922,782,116.05 rubles, which accounts for 115.51 rubles per share.

Approval of the following procedure of dividend payment:

- payment of dividends shall be executed in monetary funds;

- the following date shall be determined as the dividend record date: September 15, 2017;

- payment of dividends shall be executed pursuant to the procedure and within the time limit established by the legislation of the Russian Federation”.

Item 10 on the agenda:

“To approve the position of the Board of Directors of PJSC “Magnit” on the agenda items of the EGM”.

Item 11 on the agenda:

“To approve the following list of information (materials) to be presented to the shareholders entitled to participate in the EGM of PJSC “Magnit” to prepare for the Company’s EGM:

- recommendations of the PJSC “Magnit” Board of Directors on the dividend amount on PJSC “Magnit” shares following the results of 1H 2017, the procedure of its payment, and the dividend record date;

- draft decisions of the EGM of PJSC “Magnit” on the agenda items;

- the position of the Board of Directors of PJSC “Magnit” on the agenda of the EGM.

To authorize the sole executive body to provide access to the above mentioned information materials starting from August 10, 2017 from 10:00 AM to 5:00 PM (break from 12:00 PM to 1:00 PM) in PJSC “Magnit” headquarters at the following address: 15/5 Solnechnaya street, Krasnodar, Russia, tel. (861) 210-98-10 x 14992”.

Item 12.1 on the agenda:

“To approve the execution of the major transaction – the Guarantee agreement (several related Guarantee agreements), which the Company plans to execute in future with Public Joint Stock Company “Sberbank of Russia” (hereinafter – “the Creditor”) as a security for obligations of Joint Stock Company “Tander” (beneficiary) (hereinafter – “the Borrower”) to the Creditor under the Agreement(s) on opening of the revolving/non-revolving credit line (hereinafter – the “Credit agreements”) and (or) the General agreement(s) on opening of the revolving framework credit line with tiered interest rates (hereinafter – “the Agreements”), with the following essentials:

1. In accordance with the Guarantee agreement(s) the Guarantor shall be liable to the Creditor to the extent and on the conditions, set forth by the Guarantee agreement(s), for the fulfillment by the Borrower of all obligations, both monetary and non-monetary, and obligations which will arise in future, under the Credit agreement(s) and/or Agreement(s) concluded with the following essentials:

1.1 under the terms of the Agreements and(or) the Credit agreements the Creditor and the Borrower shall execute individual credit transactions (hereinafter – “the Credit transactions”) by signing the notes of confirmation containing essentials of the Credit transaction;

1.2 the aggregated amount of the credit limit under any of the Agreements, Credit agreements and Credit transactions shall not exceed 37,000,000,000 (Thirty seven billion) rubles;

1.3 the credit limit term under the Agreement(s) and/or the Credit agreement(s) shall not exceed 5 (Five) years;

1.4 the credit term under any Credit transaction and/or Credit agreement shall not exceed 36 (Thirty-six) months;

1.5 the interest rate for the credit use under any of the Agreements, Credit agreements and Credit transactions shall not exceed 30 (Thirty) percent per annum;

1.6 the terms, procedure of granting and redemption of the credit amounts, interests and other payments shall be determined by the relevant Agreement, Credit agreement and Credit transaction.

2. The Guarantee agreement(s) shall also ensure the Borrower’s obligations on repayment of all amounts received (requirement on the repayment of the received amounts in monetary funds) under any of the Agreements, Credit agreements and Credit transactions in case of its/their invalidity or return of the unjustified enrichment in case any of the Agreements, Credit agreements and Credit transactions are considered unconcluded.

3. The Guarantee agreement(s) shall ensure the Borrower’s obligations under any of the Agreements, Credit agreements and Credit transactions, irrespective of the loss of security and/or deterioration of conditions of security due to any circumstances on any of the Agreements, Credit agreements and Credit transactions available at the moment of conclusion of the corresponding Guarantee agreement.

4. The maximum price (amount) of the Guarantee agreement(s): the total amount of the obligations of the Guarantor under the Guarantee agreement(s) shall not exceed 38,000,000,000 (Thirty eight billion) 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 comprise 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 Guarantee agreement(s) and additional agreements on the change of terms and conditions of the Guarantee agreement(s) due to the change of terms and conditions of the Agreements and/or Credit agreements, including but not limited to the change of the interest rates, the credit amount and the period of the credit provision within the limits hereof”.

Item 12.2 on the agenda:

“To approve the execution of the major transaction – the loan agreement (several related loan agreements), which the Company plans to execute in future with the Joint Stock Company “Tander”, 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 monetary funds;

3. Maximum price (amount) of the transaction (transactions): up to 59,000,000,000 (Fifty nine billion) rubles;

4. Loan interest rate (per annum): not more than 125 (One hundred and twenty five) percent from the key interest rate of the Bank of Russia (published on the official website of the Bank of Russia in the Internet (www.cbr.ru)) as of the loan provision date;

5. Time limit for the fulfillment of obligations under the transaction (transactions): up to 3 (Three) years from the time of its conclusion (the term of repayment by the Borrower 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 comprise 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 terms including but not limited to the change of the interest rates, the loan amount and the period of the loan provision within the limits hereof”.

Item 12.3 on the agenda:

“To approve the execution of the major transaction – additional agreement, which the Company plans to execute in future, to the Guarantee agreement No.01CC5P001 of January 11, 2016 (hereinafter – the Guarantee agreement) concluded by the Company with Joint Stock Company “ALFA-BANK” (hereinafter – the Creditor) as a security for obligations of Joint Stock Company “Tander” (beneficiary) (hereinafter – “the Borrower”) to the Creditor under the Credit agreement No.01CC5L on opening of the revolving credit line in Russian rubles as of 12.01.2015 (hereinafter – the “Credit agreement”) with the following essentials (as amended by the additional agreement):

1. The Guarantee agreement shall secure the fulfillment of obligations by the Borrower under the Credit agreement on the following essentials:

1.1. The Creditor shall provide the Borrower with monetary funds in Russian rubles (hereinafter – the “credits”) in the form of the revolving credit line;

1.2. Under the Credit agreement the Borrower shall be entitled to receive credits, on which the maximum amount of the aggregate debt on any day of the term of the Credit line shall not exceed 29,000,000,000 (Twenty nine billion) rubles (outstanding limit of the principal debt);

1.3. The validity period of the Credit agreement – on or before 31.12.2025. The Borrower shall repay all received credits until the expiration date of the Credit agreement (inclusive);

1.4. The Credits within the validity period of the Credit agreement shall be provided for not more than 36 (Thirty six) months;

1.5. The interest rate: not more than 35 (Thirty five) percent per annum;

1.6. In case of undue repayment of credits, the Creditor shall be entitled to charge the Borrower a penalty in the amount of 0.1 percent of the amount of the outstanding liability per each overdue day, but not lower than the dual key interest rate of the Bank of Russia effective on the day for which the penalty is charged;

1.7. The terms and procedure of granting and repayment of the credit amounts (including the amount of any remuneration paid to the Creditor by the Borrower), other penalties for the non-fulfillment/improper fulfillment of obligations by the Borrower under the Credit agreement shall be determined by the Credit agreement.

2. The Guarantee agreement shall also cover the Borrower’s obligations in case of invalidity of the Credit agreement determined by the legally effective court decision on the return of the monetary funds received by the Borrower to the Creditor, and on the payment of the compensatory interest for the retention of monetary funds, accrued on the amount of unjustified enrichment of the Borrower.

The maximum price (amount) of the Guarantee agreement (aggregate amount of obligations of the guarantor) shall not exceed 59,450,000,000 (Fifty nine billion four hundred and fifty million) rubles.

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 comprise 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 the change of the terms and conditions of the Guarantee agreement due to the change of the terms and conditions of the Credit agreement including but not limited to the change of the interest rates, the loan amount and the period of the loan provision within the limits hereof”.

Item 13.1 on the agenda:

To recommend the sole executive body of PJSC “Magnit”, which is the sole shareholder of JSC “Tander”, to make the following decision at the realization of the voting right on JSC “Tander” shares owned by PJSC “Magnit”:

“Under the clause 14.2 of the Charter of JSC “Tander” to approve the conclusion of the Agreement(s) on the opening of the revolving/non-revolving credit line (hereinafter – Credit agreement(s) and/or the General agreement(s) on the opening of the revolving framework credit line with the tiered interest rates (hereinafter – the Agreement(s) by JSC “Tander” (hereinafter – the Borrower), which the Borrower plans to execute in future with Public Joint Stock Company “Sberbank of Russia” (hereinafter – the Creditor), and which are related to acquisition, disposal and possible direct or indirect company's disposal of the property, the cost of which amounts to 5 and more percent of the balance sheet value of assets of the company, its subsidiaries, the principal company (in relation to which the company is a subsidiary), as well as other subsidiaries of the principal company (the “Group”), determined on the basis of the latest available consolidated statements of the Group, prepared in compliance with the International Financial Reporting Standards with the following essentials:

1. under the Agreements the Creditor and the Borrower shall conclude separate credit transaction (hereinafter – the Credit transactions) by signing confirmations containing essential terms and conditions of the Credit transaction;

2. the total credit limit under any of the Agreements, Credit agreements and Credit transactions shall not exceed 37,000,000,000 (Thirty seven billion) rubles;

3. the validity period of the credit limit under each Agreement shall not exceed 5 (Five) years;

4. the credit term under any Credit transaction and/or Credit agreement shall not exceed 36 (Thirty six) months;

5. the interest rate for the credit use under any of the Agreements, Credit agreements and Credit transactions shall not exceed 30 (Thirty) percent per annum;

6. the terms, procedure of provision and repayment of credit amounts, interest and other payments shall be determined by the corresponding Agreements, Credit agreements and Credit transactions.

Hereby to provide the Chief Executive Officer of JSC “Tander” with the right to sign the Agreements, Credit agreements and Credit transactions, as well as additional agreements, which change the terms and conditions of the Agreements, Credit agreements and Credit transactions, including but not limited to the change of the interest rates, the credit amount and the term of the credit provision within the limits hereof”.

Item 13.2 on the agenda:

“To recommend the sole executive body of PJSC “Magnit”, which is the sole shareholder of JSC “Tander”, to make the following decision at the realization of the voting right on JSC “Tander” shares owned by PJSC “Magnit”:

“Under the clause 14.2 of the Charter of JSC “Tander” to approve the conclusion of the loan agreement (several related loan agreements) by JSC “Tander” (hereinafter – the Borrower), which the Borrower plans to execute in future with Public Joint Stock Company “Magnit” (hereinafter – the Lender), and which are related to acquisition, disposal and possible direct or indirect company's disposal of the property, the cost of which amounts to 5 and more percent of the balance sheet value of assets of the company, its subsidiaries, the principal company (in relation to which the company is a subsidiary), as well as other subsidiaries of the principal company (the “Group”), determined on the basis of the latest available consolidated statements of the Group, prepared in compliance with the International Financial Reporting Standards 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 59,000,000,000 (Fifty nine 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).

Hereby to provide the Chief Executive Officer of JSC “Tander” 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, the credit amount and the term of the credit provision within the limits hereof”.

Item 13.3 on the agenda:

“To recommend the sole executive body of PJSC “Magnit”, which is the sole shareholder of JSC “Tander”, to make the following decision at the realization of the voting right on JSC “Tander” shares owned by PJSC “Magnit”:

“To approve the execution of the major transaction – additional agreement, which JSC “Tander” (hereinafter – “the Borrower”) plans to execute in future, to the Credit agreement No.01CC5L on opening of the revolving credit line in Russian rubles as of 12.01.2015 (hereinafter – the “Credit agreement”) concluded with Joint Stock Company “ALFA-BANK” (hereinafter – the Creditor) with the following essentials (as amended by the additional agreement):

1. The Creditor shall provide the Borrower with monetary funds in Russian rubles (hereinafter – the “credits”) in the form of the revolving credit line;

2. Under the Credit agreement the Borrower shall be entitled to receive credits, on which the maximum amount of the aggregate debt on any day of the Credit agreement validity period shall not exceed 29,000,000,000 (Twenty nine billion) rubles (outstanding limit of the principal debt);

3. The validity period of the Credit agreement – on or before 31.12.2025. The Borrower shall repay all received credits until the expiration date of the Credit agreement (inclusive);

4. The Credits within the validity period of the Credit agreement shall be provided for not more than 36 (Thirty six) months;

5. The interest rate: not more than 35 (Thirty five) percent per annum;

6. In case of undue repayment of credits, the Creditor shall be entitled to charge the Borrower a penalty in the amount of 0.1 percent of the amount of the outstanding liability per each overdue day, but not lower than the dual key interest rate of the Bank of Russia effective on the day for which the penalty is charged;

7. The terms and procedure of granting and repayment of the credit amounts (including the amount of any remuneration paid to the Creditor by the Borrower), other penalties for the non-fulfillment/improper fulfillment of obligations by the Borrower under the Credit agreement shall be determined by the Credit agreement.

The price (money value) of the property of JSC “Tander”, which can be directly or indirectly disposed under the Credit agreement, can comprise 25 and more percent of the book value of the assets of JSC “Tander”, 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 assets of JSC “Tander”, determined from the data of its accounting (financial) statements as of the last reporting date.

Hereby to provide the Chief Executive Officer of JSC “Tander” with the right to sign the additional agreements which change the terms and conditions of the Credit agreement, including but not limited to the change of the interest rates, the credit amount and the term of the credit provision within the limits hereof”.

Item 13.4 on the agenda:

“To recommend the sole executive body of PJSC “Magnit”, which is the sole shareholder of JSC “Tander”, to make the following decision at the realization of the voting right on JSC “Tander” shares owned by PJSC “Magnit”:

To establish the branch of JSC “Tander” in Krasnoyarsk, Krasnoyarsk krai:

- name: Branch in Krasnoyarsk, Krasnoyarsk krai,

- location: rooms No. 516-519, premises No.7, 60 Mira prospect, Krasnoyarsk, Krasnoyarsk krai, 660049, Russian Federation.

Item 14 on the agenda:

“To approve the execution of the additional agreement which PJSC “Magnit” (hereinafter – the Guarantor) plans to execute in future to the guarantee agreement No. KRD/PR/023/16 of 11.11.2016 (hereinafter – the Guarantee agreement) concluded with Public Joint Stock Company ROSBANK (hereinafter – the Creditor), as a security for obligations of Joint Stock Company “Tander” (beneficiary) (hereinafter – “the Borrower”) to the Creditor under the Credit agreement No. KRD/RK/008/16 of 11.11.2016 (hereinafter – the Credit agreement), as a transaction related to acquisition, disposal and possible direct or indirect disposal by the Guarantor of the property, the cost of which amounts to 5 and more percent of the balance sheet value of assets of the Guarantor and its subsidiaries (the “Group”), determined on the basis of the latest available consolidated statements of the Group, prepared in compliance with the International Financial Reporting Standards with the following essentials (as amended by the additional agreement):

1. The Guarantee agreement shall secure the fulfillment of obligations by the Borrower under the Credit agreement concluded with the Creditor with the following essentials:

1.1. the Creditor shall provide the Borrower with monetary funds in Russian rubles, in US dollars and in Euros;

1.2. the aggregate debt limit (maximum possible amount of debt under the principal debt) under the Credit agreement shall not exceed 20,000,000,000 (Twenty billion) rubles or the equivalent of this amount in US dollars or Euros at the exchange rate of the Bank of Russia as of the date of financing provision;

1.3. the credit shall be provided in the form of individual credits under the Credit agreement. The terms, procedure of granting and repayment of the credit amounts, interest and other payments shall be determined by the Credit agreement;

1.4. the date of closing the credit line under the Credit agreement shall not be later than February 1, 2018;

1.5. each individual credit under the Credit agreement shall be provided for the period not exceeding 12 (Twelve) months from the date of provision of this credit to the Borrower and alongside with that the date of any credit return cannot be later than the Date od the credit line closure;

1.6. the interest rate for the credits use under the Credit agreement shall be determined by the Borrower and the Creditor according to the procedure specified in the Credit agreement, and the interest rate (adjusted for the increase of the interest rate amount allowed by the Credit agreement at the discretion of the Creditor) shall not exceed 30% (Thirty) percent per annum.

2. The Guarantor shall be solidarily liable for the Borrower’s obligations incurred from the Credit agreement (including obligations which may incur in future), or related to them, including, but not limited to, the obligations to pay the principal debt amount, interest, any other charges, fees and refunds, including, if applicable, the reimbursement (payment) of documented expenses, and interest, forfeit (penalties) of the Creditor incurred due to the protection and observance of the Creditor’s rights under the Credit agreement and/or the delay in fulfillment.

The guarantee also ensures the repayment (or reimbursement) of funds payable to the Creditor according to the Credit agreement, as well as related to the interest payment arising by operation of law, if the Credit agreement or any of its provisions is acknowledged invalid.

In any case, the maximum price (amount) of the Guarantee agreement (total amount of obligations of the Guarantor) shall not exceed 23,500,000,000 (Twenty three billion five hundred million) rubles.

3. The Guarantee agreement shall not expire later than August 1, 2018.

The price (money value) of the Company’s property, which can be directly or indirectly disposed by the Company under the Guarantee agreement (as amended by the additional agreement) shall comprise not more than 25 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” (person authorized by the Company by a letter of attorney) with the right to sign the guarantee agreement with the essentials specified above, and additional agreements to it due to the change of terms and conditions of the Credit agreements including but not limited to the change of the interest rates, the credit amount and the period of the credit provision within the limits hereof”.

Items of the agenda of PJSC "Magnit" Board of Directors are related to the exercise of rights on ordinary registered uncertified shares, state registration number 1-01-60525-P of 04.03.2004, International Stock Identification Number (ISIN) RU000A0JKQU8.

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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, 2017, Magnit operated 35 distribution centers and 14,844 stores (11,114 convenience, 430 hypermarkets and 3,300 drogerie stores) in 2,567 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the unaudited IFRS management accounts for 1H 2017, Magnit had revenues of RUB 555 billion and an EBITDA of RUB 49 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.