Wednesday, February 4, 2015

Sergey Galitsky place shares “Magnet” for $ 150 million – RBC

Sergey Galitsky place shares "Magnet" for $ 150 million – RBC

Photo: Yekaterina Kuzmina / RBC

On the private placement of shares the company said in a statement, “Magneto”. Investors will buy about 1.1% of the existing shares, the seller acts Lavreno Ltd, is affiliated with the company’s founder Sergey Galitsky.

The organizers of the placement – Morgan Stanley and “VTB Capital.” The placement price, according to RBC source on the market could reach 9,900 rubles per share. A source close to the organizers of the placement, said that the price has not been determined, work with investors is now.

4 February retailer shares at the closing of the Moscow stock exchange cost 10 172 rubles.

Sergey Galitsky declined to comment RBC, referring to the fact that the transaction is not completed yet.

According to the managing director of Arbat Capital Julia Bushuyeva accommodation package Galitsky does not mean that the owner of “Magnit” lost faith in his own company. “I think Galitsky needed funds for unrelated to the core business projects that are too expensive to borrow at the prevailing rate of the Central Bank. Apparently he felt that funding through the sale of shares will be cheaper, “- says Bushueva.

Sergey Galitsky said earlier that he would need about $ 5.4 billion for the greening of Krasnodar, we need money to build a stadium for its own football team, which is scheduled to be operational in October 2015. The plans of the construction of a businessman school and university. Partial lack of funds for personal projects, as previously reported, it was planned to solve through dividends. “Magnet” reported that the increase payments to shareholders 40-60%. At the last conference-call with analysts Galitsky confirmed the company’s intentions.

The announcement of sale of Galitsky made after an intensive marketing in London and New York. Most likely, the businessman already have buyers for all or nearly all shares, believes Bushueva. “Investors are likely to punish the company and the value of securities will fall. For those who believe in the company, you may be able to buy shares at a discount, “says Bushueva.

According to head of market analysis brokerage house “Opening” Constantine Bushueva, due to the high cost of borrowing on the stock market “Magnet” is now much more interesting to go than to the bond market. “The” Magnet “record plans to open stores in 2015 and, accordingly, the company for this purpose may require additional financing. I think potential buyers to “Magnet” there are many, as the company continues to be a fast-growing history of the Russian market “, – says Bush. According to him, placing the action “Magnet” not only raises funds, but increases the fee float shares, potentially expanding the scope of its investors.

Shares “Magnet” remain highly attractive to investors, it is fast growing and financially sustainable business are likely to find this package a strong demand, says senior analyst Natalia Kolupaeva Raiffeisenbank. According to her paper can be placed even at a premium to the market. “We can say that this crisis” Magnet “will be the winner – to increase the share of the market, take a new attractive sites. The company promises that 2015 will be a record in terms of store openings “- reminds the analyst.

« Magnit “is Russia’s largest food retailer. The company, headquartered in Krasnodar, was founded in 1994 by Sergey Galitsky. By the end of 2014 company’s sales network has 9.7 thousand. Shops in more than 2 thousand. Russian cities.

In 2014, the profitability index “Magnet” EBITDA margin was 11.2% .Okolo 10% of the food turnover of import operations, if not for the devaluation of the ruble, the figure could be even higher. According to the forecast of Galich, in 2015 the company’s profitability will be 9.5-11%.

Revenue “magnet” for 2014 increased by 31.7% – up to 763.5 billion rubles, net profit grew at the Third retailer to 47.375 billion rubles. Company’s gross margin for 2014 increased from 28.51 to 28,88%.

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