M.Video-Eldorado Free Float Increases to 24% After the SPO

12.03.2021 11:00

PJSC M.video (the “Company” and together with its subsidiaries the “M.Video-Eldorado Group” or the Group; MOEX: MVID), a leading Russian e-commerce and consumer electronics retailer and part of the SAFMAR Group, has been informed by the SAFMAR Group that the secondary placement of 24,279,174 shares of the Company (the “Sale Shares”) by ERICARIA Holdings Ltd., owned by the SAFMAR Group (the “Selling Shareholder”), has priced at RUB 725.00 per share (the “Offering”).

Said Gutseriev, Chairman of M.Video-Eldorado Group’ Board of Directors

“We are extremely pleased to see the strong interest in the Offering from domestic and international investors. I believe this is an endorsement of M.Video-Eldorado Group’s achievements as a leading consumer electronics retailer and one of the largest e-commerce players in Russia, as well as of our Strategy going forward. I have no doubt that the additional 13.5% of free float will further enhance the Company’s investment case and help make its shares accessible to a wider range of investors and improve trading liquidity.

“We have recently announced a number of other changes that investors certainly welcome. First, under the new dividend policy we aim to pay out at least 100% of net profit as dividends on a semi-annual basis, meaning investors will be able to participate in our success as we implement our strategy of profitable growth. Second, we aim to increase the share of Independent Directors on the Board of Directors, thus helping to ensure we have a wide range of expertise as well as balanced representation of the interests of different groups of shareholders at the Board level.

“We welcome leading international and Russian investors, as well retail investors, and are happy to share the Company's success with them”.

Alexander Izosimov, CEO of M.Video-Eldorado Group:

“As the team and I work hard to implement our ambitious strategic goals, we are confident that the Company’s commitment to sharing the results of its success with shareholders, combined with the potential increased liquidity following this Offering, will continue to attract new investors to our shares.

In recent years we have built a strong business that leverages our proprietary OneRetail technology to offer customers a seamless online and offline shopping experience. We will continue developing our mobile platform and scaling OneRetail across our unmatched nationwide network of stores and distribution centers as we work to implement our ambitious strategy. By further scaling our best-in-class online platform, augmented by a consumer electronics marketplace, and growing our digital sales of both products and value-added services, we aim to double the size of the business to a GMV of RUB 1 trillion by 2025."

The Company will not receive any proceeds from the Offering. The Selling Shareholder’s sale of the Sale Shares will not result in dilution of the Company’s issued and outstanding shares.Prior to completion of the Offering, the SAFMAR Group held an aggregate 132,140,111 ordinary shares, representing 73.5% of the Company’s share capital. Following the completion of the Offering by the Selling Shareholder, the SAFMAR Group retains an aggregate shareholding of approximately 60% of the Company’s share capital.

BofA Securities, J.P. Morgan, UBS Investment Bank and VTB Capital acted as Joint Global Coordinators and Joint Bookrunners in connection with the Offering (the “Joint Global Coordinators”). Renaissance Capital acted as Adviser to the Company in connection with the Offering.