Page 139 - RusRPTNov23

the process. On the digital front Magnit was also trying to catch up with its rival X5 that emerged as the largest e-grocer in Russia in 2020. Magnit's 2021-2025 strategy included building a leading e-grocery platform capable of handling 5%+ turnover with integration into an omni-channel consumer experience. Magnit will also receive a pool of 12,000 Russian sellers of the marketplace. KazanExpress will be rebranded into "Magnit Market".
Magnit announced the launch of a second round of share repurchases
aimed at non-resident investors in the amount of up to 8.02 million shares, or up to 7.9% of all issued and outstanding. The announcement noted that the tender offer was launched to provide liquidity to investors who would like to monetize their investment in the company but were unable to participate in the previous tender offer announced on June 16, 2023.
As in the first tender offer, non-resident shareholders may take advantage of the opportunity to sell their shares and receive payment for them in dollars, euros, yuan or rubles, including into their foreign bank accounts. The acquisition price was set at RUB 2,215. per share and remains unchanged from the acquisition price announced in the offering dated June 16, 2023.
On September 14, Magnit completed the buyback of shares from non-residents, as part of which 21.9 million shares were purchased, or 21.5% of all issued and outstanding securities. The transaction value is equivalent to approximately RUB 48.5 billion.
• Detsky Mir
The structure of Detsky Mir “DM-Financial Assets” sent a mandatory offer to buy out shares to minority shareholders. The redemption price is set at 71.5 rubles. per ordinary share. Shareholder applications for the sale of shares as part of the mandatory offer will be accepted from October 5 to December 14. The payment period for shares will be 17 days from the date of expiration of the period for acceptance of the mandatory offer. It is planned to buy up to 307 million securities. Non-resident minority shareholders from “unfriendly” countries who accept the mandatory offer of the structure will only be able to receive cash for the shares they sell into “C” accounts.
On September 20, Detsky Mir announced the completion of the reorganization of the business from a public joint stock company into a private company after the purchase of 58.26% of shares from minority shareholders. They are owned by DM-Financial Assets. The share of Detsky Mir shares listed on the Moscow Exchange is 60%. On August 1, Detsky Mir completed the repurchase of more than 12 million of its own shares from minority shareholders through the Moscow Exchange.
139 RUSSIA Country Report November 2023 www.intellinews.com