1 Dec 2021 06:59
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.
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.
[1] Excluding acquisition of the Dixy retail business |
| 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 |
UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.