Russian retailer Magnit said that foreign shareholders had tendered shares representing about 7.8% of the company in an additional, discounted buyback offer worth about RUB 17.5 billion (€180 million).
Magnit launched the additional offer to buy back blocked shares in October, giving more Western investors an opportunity to withdraw funds from Russia, after attracting significant interest in a previous tender.
Magnit completed a RUB 48.5 billion (€500 million) buyback of around 21.5% of all issued and outstanding shares in September, the first such arrangement since Russia's February 2022 invasion of Ukraine.
That deal was the first time non-resident shareholders of a Russian public company had been able to dispose of their shareholdings with settlement in different currencies since the imposition of sweeping Western sanctions. Moscow countered those with measures of its own.
Extra Offer
Strong foreign demand saw Magnit launch the extra offer. On Wednesday, Magnit said institutional and retail investors from 19 countries had submitted shares for tender.
Magnit said its wholly owned subsidiary Magnit Alyans intends to accept all tendered shares – 7,899,569 in total – for purchase.
'Magnit also notes that ... neither the purchaser nor any of its affiliates will or intend to increase its interest in the share capital of Magnit to more than 30% of all issued and outstanding shares,' Magnit said.
The offer was priced at RUB 2,215 (€22.9) per share, the same as the original tender, equating to a total deal size of around RUB 17.5 billion, according to Reuters calculations.
The Kremlin demands a discount of at least 50% on asset sales involving foreigners.
