UPDATE2: Magnit confirms interest in buying 100% in Lenta

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MOSCOW, Apr 5 (PRIME) -- Russian retailer Magnit has put forward an indicative non-binding proposal to buy 100% in retailer Lenta and is interested in the deal, a spokesperson for Magnit told PRIME on Friday.

“Magnit is indeed interested in the deal. The retail chain made an offer to buy 100% in Lenta,” the spokesperson said.

Lenta said on Friday that Magnit offered to buy 100% of its shares for U.S. $1.8 billion shortly after Alexei Mordashov’s Severgroup signed a binding agreement to buy the retailer from TPG and the European Bank for Reconstruction and Development (EBRD).

“On April 1, after Severgroup signed separate agreements with TPG and EBRD and shortly before the announcement of the offer, Lenta received a conditional non-binding offer from Magnit to buy 100% of Lenta’s business for $1,779,525,836, which is equivalent for $3.65 per a global depositary receipt (GDR) of Lenta,” the statement said.

Lenta’s independent directors applied to Magnit to confirm whether Magnit plans to implement the deal with Lenta in light of an offer from Severgroup. In case of a positive decision, Lenta’s directors asked to provide information about the time and terms of the deal. Magnit has not so far provided such details, Lenta said.

Independent directors also confirmed that Magnit applied to Lenta on March 11 to discuss a possible merger. The companies held general consultations, but Magnit did not provide any certain information about the structure and terms of the possible deal.

Severgroup said on Tuesday that it agreed to buy 34.44% in Lenta from TPG Group and 7.4% from EBRD at a price of $3.6 per GDR.

Severgroup said on Friday its offer to buy Lenta is not subject to any changes.

“We do not comment on Magnit’s offer. We, as we said earlier, signed an agreement, we are waiting for approval by the Federal Antimonopoly Service to close the deal with TPG Group and EBRD and make a further offer to minority holders. The agreement has already been signed, and it is binding and is not subject to any changes,” a representative of Severgroup told PRIME.

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