RUSSIA: Magnit to raise funds for expansion | Progresiv

Magnit has announced a two-step fundraising move that will see it net around 700 million dollars, which it will invest in its expansion. The first stage saw Lavreno Limited, a company affiliated with Magnit’s main shareholder Sergey Galitskiy, sell shares worth 44 billion roubles.  The second stage will see Magnit issue new shares which will be acquired by Lavreno.

Both moves were conducted via an “accelerated book-build”, and are being widely seen as allowing Magnit access to quick cash in the form of a loan from Galitsky.  Magnit said it will use around 60% of the proceeds to invest on its store expansion plans, with the remainder going towards expanding its food production. (www.kamcity.com)