OJSC 'MAGNIT' (FRA:5M71) Magnit obtains leasehold rights for 56 Edelweiss stores in Kazan
Transparency directive : regulatory news
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MAGNIT PJSC (MGNT)
MAGNIT obtains leasehold rights for 56 edelweiss stores in kazan
Krasnodar, November 26, 2021: Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, announced it has reached an agreement for the long-term leasehold rights for the 56 stores currently operating under the Edelweiss brand in Kazan. The stores are located in Kazan (the fifth largest city in Russia with approx. 1.3 million inhabitants[1]) representing 25 thousand sq. m. of selling space. The lease rights are planned to be obtained for up to 10 years. As of September 30, 2021, Magnit operated 265 stores in Kazan including 183 convenience stores, 3 supermarkets and 79 drogeries. The stores align with the Company's format strategy in terms of size and layout and are located in high-quality densely populated areas. The lease of former Edelweiss stores will strengthen Magnit's position in the local market and support its continued development. According to the agreement the Company plans to obtain leasehold rights in several stages, subject to successful legal and technical due diligence. Obtainment of the leasehold rights does not require any regulatory or Magnit's Board approval. The stores will be redesigned where relevant and will become operational in several stages under the Magnit brand. In total, the Company plans to open 67 stores in the premises of former Edelweis outlets - 50 convenience stores, 14 drogeries and 3 hard discounters. The stores are scheduled to be opened within 4Q 2021 - 1Q 2022. The redesign will not require significant investment and has no impact on 2021 capital expenditures projections.
[1] According to Rosstat as at the beginning of 2021 |
| ISIN: | US55953Q2021 |
| Category Code: | MSCU |
| TIDM: | MGNT |
| LEI Code: | 2534009KKPTVL99W2Y12 |
| OAM Categories: | 3.1. Additional regulated information required to be disclosed under the laws of a Member State |
| Sequence No.: | 127681 |
| EQS News ID: | 1252129 |
| End of Announcement | EQS News Service |
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