20 Dec 2016 14:28
PJSC PIK Group / Miscellaneous - Low PriorityPIK Group completes acquisition of Morton Group 20-Dec-2016 / 16:27 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- / PIK Group completes acquisition of Morton Group Russia's first publicly listed real-estate developer becomes the nationalsector leader Moscow, 20 December 2016. PIK Group (LSE: PIK), a leading publicly-tradedRussian developer of large-scale projects in Moscow, the Moscow region andother parts of Russia, announces that it has completed the acquisition ofMorton Group from Sergei Gordeev's Horus Real Estate Fund I B.V. By combining the assets, production capacities and operational units ofthese two companies under the PIK brand, a national-scale industry leaderhas been created. For the first time in history of Russian real-estatedevelopment, the leading player in the industry is a public company with anefficient and transparent business model. The acquisition of Morton Group's real-estate business marks an importantstep in the Company's development strategy, which aims to increaseoperational efficiency and market capitalisation. Management expects thatin 2017-2018 the Company's revenue could reach RUB 200 billion, with annualsales volumes of around 2 million sq. m., while high-tech productioncapacities for industrial construction will exceed 1.0 million sq. m. Thecombined land bank will amount to 15 million sq. m. During first phase of the integration, PIK Group has optimised a number ofbusiness process and formed a new organisational structure of the combinedcompany. At the moment combined economy from the integration has amountedto RUB 4.5 billion per year with a target of RUB 10 billion per year to bereached by the end of 2017. In addition, PIK Group has placed bonds for RUB 10 billion and signed aloan agreement with one of the biggest Russian banks for additional RUB 10billion loan at a more comfortable interest rate, which together will allowto refinance 85% of Morton Group's expensive short-term debt. Completion of the integration project and the launch of work as a singlePIK brand is planned by the end of 1Q 2017. PIK Group President Sergey Gordeev said: 'The synergies from the combinedcompany will allow us to become not just stronger and more efficient, butwill help fuel the qualitative development of the sector as a whole. Toincrease buyers' trust in new-build real-estate, we need to constantlyraise the quality of construction and high level of client service. This isin part the responsibility of sector leaders, and we see our role being toconstantly raise the bar. For this reason we continue to invest more inquality of our projects and client services.' *** PIK Group contacts: Press Service Investor RelationsNatalya Mikhna Polina KurshetsovaTel: +7 (909) 913 14 70 Tel: +7 495 505 97 33 ext. 3785E-mail: pressa@pik.ru E-mail: ir@pik.ru --------------------------------------------------------------------------- The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: PJSC PIK Group 19 bld 1 Barrikadnaya Street 123242 Moscow Russia Phone: +7 (495) 505 97 33 Fax: +7 (495) 229 90 11 E-mail: ir@pik.ru Internet: www.pik-group.ru ISIN: US69338N2062, RU000A0JP7J7 WKN: A0MSSL Listed: Foreign Exchange(s) London, Moscow Category Code: MSCL TIDM: PIK Sequence Number: 3712 Time of Receipt: 20-Dec-2016 / 16:27 CET/CEST End of Announcement EquityStory.RS, LLC News Service--------------------------------------------------------------------------- 532027 20-Dec-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.