Russian retailer Magnit said it was extending a buyback offer to shareholders holding stakes through the clearing house Euroclear, a move that could open the door for more foreign investors to extract capital from Russia.
Magnit is offering to buy back blocked shares from foreign shareholders and last month tripled the size of its initial offer on strong demand from Western investors keen to exit Russian holdings.
The offer to buy back shares at a 50% discount is the first proposal of its kind by a Russian company since Western sanctions prompted by Moscow's invasion of Ukraine and subsequent Russian countermeasures deprived many foreign investors of the ability to trade in Russian securities.
Extension Of Tender Offer
'The decision to extend the tender offer to include shareholders who hold shares through Euroclear was made due to the resumption of settlement of the company’s shares in Euroclear, as well as due to enquiries received by the purchaser from shareholders who hold their shares through Euroclear,' Magnit said in a statement.
All other aspects of the tender offer remain unchanged, Magnit said.
In June, sources told Reuters that the Russian retailer may increase its offer to buy back blocked shares at a discount by around double after seeing strong demand from Western investors keen to exit Russian holdings.
"Finally, someone has given big and institutional investors an opportunity to exit assets in Russia, in which they have no prospects," one of the sources said. "Everyone likes the fact that you can exit not only in roubles, but also in euros and dollars and to foreign accounts. So far, no one has offered this."
