Magnit

Related Party Transaction • Jun 24, 2014

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OJSC MAGNIT - Execution of Related Party Transaction

PR Newswire

London, June 24

Press-releaseKrasnodarJune 24, 2014OJSC "Magnit" Announces the Execution of the Related Party TransactionKrasnodar, June 24, 2014: OJSC "Magnit", Russia's largest food retailer (the"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of thetransaction on June 23, 2014.The essentials of the transaction are as follows:Type of transaction: Related party transactionSubject of Provision by the Issuer of the guarantee underthetransaction: revolvingcredit line agreement №KRD/RK/003/14as of June23, 2014, executed between JSC "Tander" and OJSC JSCB "ROSBANK "Content of the In accordance with the guarantee agreement №KRD/PR/052/14transaction: as of June23, 2014the Guarantor shall be gratuitously liable to the Creditorto the extent provided by this Agreement for the performance of obligationsbythe Borrower under the Revolving credit line agreement №KRD/RK/003/14, executed between the Borrower and the Creditor in Krasnodar as of June 23, 2014,on the following terms: * The creditamount : 3,400, 000,000 (threebillion four hundred million)rubles * The granted term of the credit is until July22, 2015 (inclusive) * The Borrower shall pay the interest on credit to the C reditor at the rate determined by the Revolving credit line agreement but not exceeding 12% per annum * The liability of the Guarantorfor the performance of all obligationsby the Borrowerunder the Credit a greement shall belimited to the amount of 3,40 0,000,000.00 (threebillion four hundred million) rubles * The guaranteeterminates upon the proper performance of obligations by the Borrower under the Credit Agreement or the unilateral change of the Credit Agreement essentials increasing the liability of theGuarantorDeadline for the July 22, 2015 (credit maturity)fulfillment of theobligations:Parties and The creditor - OJSC JSCB "ROSBANK"beneficiaries undertransaction: The guarantor - open joint-stock company "Magnit" The borrower (beneficiary) -joint-stock company "Tander"The amount of the 3,400, 000,000rubles which amounts to 4.16% of the balancetransaction in the sheet assets of the issueras of December 31, 2013monetary value andas a % of the assetvalue of the issuer:Asset value of the 88,717, 075thousand rubles(as of December 31, 2013)issuer as of theclosing date of theaccounting periodpreceding theexecution of thetransaction:Date of the June23, 2014transactionexecution:Information on the The transaction was approved by the General shareholdersapproval of the meetingof May 29, 2014(Minutes of the general shareholderstransaction: meeting of OJSC "Magnit" w/o No. of May 29, 2014)For further information, please contact:Timothy Post Director, Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562Dina Svishcheva Deputy Director, Investor Relations Email: Chistyak@magnit.ru Office: +7-861-277-45-54 x 15101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562Company description:Magnit is Russia's largest food retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of March 31, 2014,Magnit operated 23 distribution centers and over 8,200 stores (7,341convenience, 215 hypermarkets, and 700 cosmetics) in more than 1,905 cities andtowns throughout 7 federal regions of the Russian Federation.In accordance with the audited IFRS consolidated financial statements for 2013,Magnit had revenues of $18,202 million USD and an EBITDA of $2,032 million USD.Magnit's local shares are traded on the Moscow Stock Exchange (MICEX: MGNT) andits GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit ratingfrom Standard & Poor's of BB. Measured by market capitalization, Magnit is oneof the largest retailers in Europe.