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Marathon Group announces intention to increase its stake in retail chain Magnit

Marathon Group announces an intention to acquire approximately 12.9% of the ordinary shares of PJSC “Magnit” (“Magnit” or the “Company”) from VTB Group. It is expected that the remaining 4.4% stake in the Company owned by VTB Group will be offered to institutional and individual investors through an accelerated bookbuild (the “Offering”).

Marathon Group will acquire Magnit’s shares from VTB Group at a price per share to be determined in the Offering.

Following the proposed acquisition of 12.9% shares of the Company, Marathon Group will increase its stake in Magnit ’s share capital to 29.75%, and will become its largest shareholder.

Alexander Vinokurov, Marathon Group CEO: «Back in 2018, upon our initial investment into Magnit we have said that with substantial efforts from management team and shareholders the Company will regain its leadership amongst Russian retailers. Today we see that it has been achieved. Given impressive results of Magnit throughout the past three years and the immense potential of the Russian retail sector and the company, we have decided to increase our stake in the capital of Magnit».

«Our investment in Magnit is long-term. There is no plan to further increase our stake up to a controlling one and we feel very strongly that the Board composition should retain a majority of independent directors, in line with best practices of corporate governance already established in the company”, - says Vinokurov.

Marathon Group was founded in 2017 by Alexander Vinokurov and Sergei Zakharov. The Company primarily focuses on strategic investments in retail, FMCG, infrastructure and other projects with subsequent development of the assets. Current investments of Marathon Group include shareholdings in a leading food retail chain «Magnit», the largest franchisee of quick service restaurants «KFC» in Russia, «Demetra-Holding» (the largest vertically integrated grain holding company in Russia with export logistics and trading assets) and «Bentus Laboratories» (producer of hand sanitizers). Recent highlights: turn-around and sale of pharmaceutical companies «Sintez», «Biocom» and «Fort», of pharmaceutical distributor «SIA Group», and financial investment in “Fix Price” (a leading variety value retailer in Russia).

Magnit is one of Russia’s leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. Magnit completed acquisition of the Dixy retail business in July 2021. As of September 30, 2021, Magnit operated 45 distribution centers and 25,315 stores in 3,840 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the unaudited IFRS 16 management accounts results for 9M 2021, Magnit had revenues of RUB 1,311.5 billion and an EBITDA of RUB 93 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT).