Moscow, 27 March 2017 – PIK Group ("PIK" or the "Company") (MOEX: PIKK, LSE: PIKK) today announces the results of the Tender Offer announced on 13 March 2017. The Tender Offer closed at noon GMT on 24 March 2017.

With the aim of assuring the rights and interests of GDR holders in the context of low liquidity of the Company’s GDRs on the London Stock Exchange, and in keeping with its strong commitment to good corporate governance and fair treatment of GDR holders, the Company provided its GDR holders the option to tender their GDRs to PIK at US$ 5.101 per GDR (the “Tender Offer”). The purchase price represented a premium of 13% per GDR to the 3-month volume weighted average price for the period ended on 10 March 2017, and a premium of 3% to the closing price per GDR on the LSE on 10 March 2017.

Based on the final report provided by the GDR Tender Agent, a total of 53,025,804 GDRs were validly tendered and not withdrawn by GDR holders. In accordance with the terms and conditions of the Tender Offer, PIK has accepted to purchase on a pro rata basis (adjusted to exclude fractional entitlements) 49,990,198 GDRs, representing the maximum number of GDRs under the Tender Offer, at the price of US$ 5.101 per GDR, for a total cost of US$255 million. The GDR Tender Agent will make payment through the clearing systems as soon as practicable for further distribution to the holders of the GDRs that have been tendered and accepted.

The GDRs that PIK has accepted to purchase represent approximately 62.6% of the Company’s issued GDRs as of 24 March 2017.

As announced on 13 March 2017, an application will be made with the UK Listing Authority to cancel the listing of the GDRs from the Official List of the United Kingdom Financial Conduct Authority and from trading on the standard segment of the London Stock Exchange (the “Delisting”). Delisting is expected to take place on 15 June 2017.

• Following the Delisting, the GDR programme will remain in place and continue to be administered by BNY Mellon. GDR holders may:
• continue to own delisted GDRs, retaining the right to vote and receive dividends on the underlying shares;
• sell their GDRs on the over-the-counter (OTC) market; or
• convert their GDRs into MOEX-listed ordinary shares,

and should seek independent financial, legal and tax advice as to the options available.

Sergei Gordeev, President and Chairman of the Management Board, said:

“We are pleased with the results of the tender offer. PIK intends to delist from the LSE in June 2017 and consolidate trading of our shares on Moscow Exchange in order to increase the liquidity of the stock.”

ABOUT PIK GROUP

PIK Group was founded in 1994 and today is the leading residential real estate developer by construction volumes (sqm) in the Moscow Metropolitan Area and in Russia as a whole[1]. The Company is present in nine regions of Russia with an extensive project pipeline focused on the lucrative Moscow Metropolitan Area. The Company has a proven track record with about 16 million sqm of residential real estate built since inception (0.9 million sqm in 2016).

PIK shares have been listed on Moscow Exchange since 2007 and the Company has the largest market cap among Russian peers of $3.3 billion[2]. PIK Group has a strong reputation on the market and continues to demonstrate robust financial and operating results:

• Record growth by all indicators in 2016 - total cash collections progressed by 47% year-on-year, new sales contracts to customers advanced by 52% year-on-year, 63 new properties were put on sale against 50 in 2015;
• The share of mortgage-backed deals has grown sevenfold over the last seven years thanks to a disciplined and customer-centric approach;
• Comfortable leverage profile without exposure to currency risks which creates room for further sustainable growth.

2017 will be a turning point as the Company intends to double the size of its business primarily on account of synergy gains arising from the acquisition deal, favourable market momentum and a lower mortgage rate trend. PIK expects to achieve total new sales to customers of 1.7 – 1.9 million sqm (up 80-100% year-on-year) and total cash collections of RUB 190 - 200 billion
(up 90-100% year-on-year).

ENQUIRIES

PIK contacts

Investors                                                                    Media

Polina Kurshetsova                                                      Natalia Mikhna

Tel: +7 495 505 97 33 ext. 3785                                    Tel: +7 909 913 14 70

E-mail: ir@pik.ru                                                         E-mail: pressa@pik.ru

EM contacts 

[1]Source: National Association of Property Developers data as of 1 March 2017, as a sum of PIK and Morton’s data

[2]As of 10 March 2017