Within 35 days Sergei Gordeev will send a mandatory offer to purchase shares from minority shareholders

Moscow, 17 July 2017 – PIK Group ("PIK" or the "Company") (MOEX: PIKK), Russia’s largest residential real estate developer, announces the completion of transactions through which entities owned by PIK President and Chairman of the Management Board Sergei Gordeev have acquired stakes in the Company from entities belonging to Alexander Mamut and Mikhail Shishkahanov at a price of RUB 280 per ordinary share. Sergei Gordeev is now the controlling shareholder with a stake of 50.02%.VTB Capital acted as the arranger for the transaction.

In accordance with current legislation, Sergei Gordeev will make a mandatory tender offer to the Company’s minority shareholders, which will be sent to PIK’s Board of Directors for consideration within 35 days from the completion of the acquisition. The offer price will correspond to the weighted average price of the Company’s ordinary shares on the Moscow Exchange during the six months prior to when the mandatory tender offer is sent for review to the Central Bank of Russia.

Earlier, in accordance with current legislation and with the aim of carrying out a mandatory tender offer, Sergei Gordeev received approval from the Federal Anti-Monopoly Service (FAS) to consolidate up to 100% of PIK’s shares. At the same time, the controlling shareholder and PIK management have confirmed their commitment to maintain a presence on the capital markets and to development as a public company.

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

“Consolidation of a controlling stake in PIK is a necessary step towards the effective implementation of the Company’s long-term strategy for growth and development. It also marks an important milestone in our capital markets strategy, which is aimed at increasing market capitalisation and share liquidity.

“I have full confidence in the promising outlook for our business and in the possibility to turn PIK into a technology leader in its sector. Equally, I fully support PIK’s future as a public company, and believe that a broad range of Russian and international investors will be part of our success story.”

About PIK Group

PIK Group was founded in 1994 and today is the leading residential real estate developer in the Moscow Metropolitan Area and in Russia as a whole. 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. 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 grew 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.

In 2017 the Company intends to maintain its market leadership on the affordable housing market, and expects total new sales to customers of 1.7-1.9 million sqm and total cash collections of RUB 190-200 billion.

Contacts:

PIK

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