MOSCOW: Russia's top food retailer Magnit said on Thursday its biggest investor and founding chief executive Sergey Galitskiy had raised 9.8 billion roubles ($143 million) by selling 1 percent of company shares to fund a separate investment.
Galitskiy will remain the long-term strategic investor in the company, Magnit said, after Cyprus-based Lavreno Ltd, which previously held a 3.44 percent stake in Magnit on behalf of Galitsky, sold 1 million shares at 9,823 roubles each.
The price represents an around 5 percent discount to the market price of 10,340 roubles at Wednesday's closing. The shares were down 3.3 percent to 9,995 roubles in morning trading on Thursday.
"The proceeds to Lavreno from the Placing will be used to fund a separate investment," Magnit said in a statement without providing further details.
Galitskiy, who directly owns 38.67 percent of Magnit shares, had earlier said he could gradually lower his stake to fund projects such as the construction of a stadium for his soccer club FC Krasnodar.
Morgan Stanley and Russian bank VTB's investment arm VTB Capital acted as bookrunners for the offer.
Comments
Comments are closed.