Magnit PJSC (“Magnit”, the “Company”; MOEX ticker: MGNT) has been informed that its shareholder Lavreno Limited (“Lavreno”) has initiated the process for a placing of up to 1,000,000 existing shares of the Company owned by it (the “Placing”), in the form of local Ruble denominated shares.

The shares offered in the Placing will be placed in an accelerated private placement to international institutional investors on a Reg S basis, and to US QIBs on a 144A basis. The price per share, the final number of shares sold, and allocations will be determined following completion of the bookbuilding.

Lavreno residual shareholding in Magnit following the Placing will remain subject to lock-up for 90 days, subject to certain exceptions, including the ability to transfer shares in the event of enforcement of existing pledges and the ability to pledge shares. Lavreno has also undertaken to procure that Sergey Galitsky complies with the same lock up restrictions.

Sergey Galitsky also made clear his intention to remain long-term strategic investor in the Company and that the proceeds to Lavreno from the Placing will be used to fund a separate investment.

Morgan Stanley & Co. International plc (“Morgan Stanley”) and VTB Capital (“VTB”) are acting as Joint Global Coordinators and Joint Bookrunners for the offer.

Magnit announces that the retail sales growth registered in January 2015 is in line with the trend observed during December 2014 and disclosed to the market on January 10, 2015.

Notification of Share Placing by Lavreno Limited