31 Oct 2016 05:10
PJSC PIK Group / AcquisitionPIK GROUP TO BUY MORTON GROUP FROM SERGEI GORDEEV 31-Oct-2016 / 07:10 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 TO BUY MORTON GROUP FROM SERGEI GORDEEV PIK to become national champion of development industry in Russia Moscow, 31 October 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 will acquire Morton Group fromSergei Gordeev's Horus Real Estate Fund I B.V. and integrate it into PIKGroup. By combining the assets, production capacities and operational units ofthese two companies under the PIK brand, a national-scale industry leaderwill be created. Management estimates that in 2017-2018 the new Company'srevenue could reach RUB 190 billion, with annual sales volumes of around1.8 million sq. m. The Company's land bank will amount to 10 million sq.m., while high-tech production capacities for industrial construction willexceed 1.5 million sq. m. The Company will preserve the best qualities ofeach of the businesses, helping to significantly increase theirproductivity by optimising processes, and reducing administrative and othercosts by up to RUB 10 billion per year. The transaction encompasses all of Morton Group's assets that werepurchased earlier this year by Sergey Gordeev in a private deal. Horus RealEstate Fund I B.V. owned by Mr. Gordeev is selling the assets at theacquisition price. The decision to sell the assets was made after a carefulreview of Morton Group's business and an analysis of the synergies thatcould be achieved by combining the two companies. This transaction is expected to complete before the end of 2016, followingreceipt of approval from the Federal Antimonopoly Service and completion ofall legal procedures. The price and other parameters of this deal will bedisclosed in accordance with regulatory requirements governing disclosuresby companies with publicly-traded shares. PIK Group will finance theacquisition from a combination of its own funds as well as funds raisedfrom a recent bond placement. PIK Group intends to complete Morton Group'scurrent and announced construction plans in accordance with previouslyannounced timing. All obligations to clients will be fully honoured. PIK Group's acquisition of Morton Group will have a positive impact on allaspects of both businesses, and will be of benefit to all clients. PIKGroup's unique product development, design, neighbourhood planning,strategic development and corporate governance competencies will becomplemented by Morton Group's successful experience in advanced productiontechniques for concrete panels, and its expertise in the construction ofutilities infrastructure. The newly formed company will also be able toattract funding on more advantageous terms in order to develop further itsexpansive land bank and project portfolio. Commenting on his expectations from the deal, PIK Group President SergeiGordeev said: 'Today we are creating one of the largest developers in Russia, that willbe capable of strengthening the position of the sector as a whole. This isa big responsibility for us, but I am confident that we will show ourleadership and live up to the challenge of building high-quality,attractive and innovative housing, allowing us to make happier a growingnumber of people in Russia. 'This deal opens enormous new growth opportunities, as well as thepotential to increase productivity of the new company. Thanks to theincreased operating efficiencies we expect to achieve as a result ofsynergies between the two businesses, we intend in the near future tobecome the industry leader in terms of operating results and marketcapitalization.'*** PIK Group's Management will host a conference call for investors andanalysts followed by a Q&A session. Conference Call Dial-In Details: Date: Monday, October 31, 2016Time: 14:00 Moscow / 11:00 London / 6:00 New YorkTitle: Acquisition of MortonConference ID: 6080939Domestic line: +7 495 213 1767UK international tel.: +44 203 043 2002 About PIK Group PIK Group was founded in 1994 and is a leading, publicly traded, Russiandeveloper of large-scale projects in Moscow, the Moscow region and otherregions of Russia. Since its foundation, the company has built nearly 16million sq. m. of residential real estate (over 270,000 apartments). TheRussian Federation Government has included PIK Group in its list ofsystemically-important companies for the Russian economy. World Finance Magazine named PIK Group the best residential real estatedeveloper in Europe. Expert Rating Agency has given the company an A+credit rating with a stable outlook. About Morton Group Morton Group specialised in the construction of large-scale residentialneighbourhoods in Moscow and neighbouring parts of the Moscow region, whichinclude all necessary social infrastructure and utilities, providingcomfort, education and leisure for residents. The company is regularlyranked among the top three companies in Russia by construction volumes, andis the largest in Moscow and the surrounding metropolitan area. MortonGroup's portfolio includes active projects in Moscow and the Moscow regionwith a total of 5.3 million sq. m. due to be completed over the next 5-7years (excluding the group's sizeable landbank) PIK Group contacts: Press Service Investor Relations Natalya Mikhna Polina Kurshetsova Tel: +7 (909) 913 14 70 Tel: +7 495 505 97 33 ext. 3785 E-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: ACQ TIDM: PIK Sequence Number: 3535 Time of Receipt: 31-Oct-2016 / 07:10 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 515813 31-Oct-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.