PJSC LSR Group (the "Company" or "LSR Group"), one of Russia's leading residential real estate developers and building materials producers, further to its announcement of 2 April 2019 relating to the Intended Sale of Existing Ordinary Shares in PJSC LSR Group, has been informed that Solneau Limited (the "Seller"), a company controlled by Mr. Andrey Molchanov (Chairman of the Board of Directors and the largest shareholder of the Company), has entered into an agreement to sell 10 million ordinary shares in the Company (the "Sale Shares") in the form of local Rouble denominated ordinary shares listed on the Moscow Exchange (the "Sale") at a price of RUB580 per Sale Share (the "Offer Price") (for purchasers who have expressed a wish to pay in US Dollars, the amount payable per Sale Share will be USD8.8587, based on the exchange rate set by the Central Bank of Russia for 3 April 2019, being USD1:RUB65.4726). The Sale Shares represent 9.71% of the issued share capital of the Company.
As a result of strong demand from investors, the Seller's original target of selling approximately 5.7 million ordinary shares was upsized to 10 million ordinary shares, to provide more liquidity to the stock.
Based on the Offer Price the Seller will receive gross proceeds from the Sale of approximately RUB5.8 billion. The Company will not receive any proceeds of the Sale.
J.P. Morgan Securities plc and VTB Capital plc (the "Managers") acted as Joint Global Coordinators and Joint Bookrunners in connection with the Sale.
In connection with the Sale, each of Mr. Andrey Molchanov and the Seller have agreed to lock-up arrangements for 90 days following the completion of the Sale, subject to customary exceptions, in respect of their remaining shareholdings in the Company.
Following completion of the Sale, Mr. Andrey Molchanov will continue to hold in aggregate approximately 50.33% of the issued share capital of the Company. Correspondingly, the Company's free float will increase to approximately 41.57%.
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY LAW. THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT, PRIOR TO ITS PUBLIC DISCLOSURE, IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OF, OR THE SOLICITATION OF AN OFFER TO ACQUIRE OR DISPOSE OF SECURITIES IN ANY JURISDICTION, INCLUDING IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA AND JAPAN.