5 Jun 2008 07:00
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES OF AMERICA
PIK GROUP ("PIK" or the "Company")
PIK GROUP BOARD OF DIRECTORS TO CONVENE
TO VOTE ON ADDITIONAL SHARE ISSUANCE
(LONDON, 05 June 2008) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, announces that yesterday, June 4, 2008, it received a request from two of its shareholders, Forienst Investments Limited and Maritrade Investments Limited, for the Company's Board of Directors to convene a meeting to vote on an issuance of new shares by open subscription which would include an offer to existing shareholders through pre-emption rights. The Company's Board of Directors plans to vote on this new share issuance on June 5, 2008.
If approved, the Company plans to use the net proceeds from this new share issuance for payments in relation to acquisitions of the following new land plots consistent with the Company's strategy:
approximately 63 hectares in St. Petersburg (the intention to acquire was announced on June 4, 2008), PIK plans to develop 1.3 million square meters of housing on this site; and
approximately 229 hectares in Izhevsk, PIK plans to develop 1.5 million square meters of housing on this site.
Payments to be made this year in respect to these acquisitions will total approximately US$280 million. The Company intends to use the net proceeds of the capital increase to fund a portion of these payments. The remainder of these payments will be funded from other sources.
As of January 1, 2008, the Company's property portfolio amounted to 14.2 million square meters of unsold net sellable space, which was valued at US$12.3 billion by CB Richard Ellis, an independent appraiser. Following the acquisitions described above, the total land bank of the Company will increase by approximately 30% in net sellable space.
Enquiries:
PIK Group Tel: +7 495 505 97 33 ext. 1358
Viktor Szalkay
Investor Relations
Dmitry Ivliev Tel: +7 495 232 11 22
Natalia Konovalova
Public Relations
Citigate Dewe Rogerson Tel: +44 20 7638 9571
Tom Baldock
Lindsay Noton
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PIK. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK's projections or forward-looking statements, including, among others, general economic conditions, PIK's competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to PIK and its operations.
The Securities referred to herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.
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NOTES TO EDITORS
PIK Group Overview
Founded in 1994, PIK Group is one of the leading vertically integrated residential developers with presence in over 20 cities across Russia. Its business activities are concentrated in Moscow and the Moscow region with an increasing footprint in many of Russia's other regions. Its principal activity is the development, construction and sale of residential properties in large scale developments targeted primarily at the middle income housing market in Russia.
Since 2004, PIK Group has completed over 4 million square meters of residential housing, which is equivalent to approximately 58,000 residential units across Russia.
On June 1, 2007, the Company completed successful listings on the London Stock Exchange, the RTS and MICEX exchanges in Russia.
PIK Group's website address is: www.pik.ru
PIK Group Financial Summary
The Company's revenue in 2007 was US$2.7 billion, while 2007 EBITDA reached US$939 million. Net profit for the year amounted to US$700 million.
According to CBRE, an independent appraiser, the combined market value of the Group's properties valued as of January 1, 2008 was US$12.3 billion.