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Magnit Mulls $500M Issue

Retail chain Magnit is considering a new share placement worth at least $500 million to help finance its investment program, Vedomosti reported Monday.

The newspaper quoted two undisclosed investment banking sources as saying the secondary placement, equal to about 4 percent of Magnit's share capital, may take place in the fall.

Magnit last month raised capital expenditure guidance to $1.8 billion from the earlier expected $1.5 billion to keep pace with recovering consumer demand. The SPO would allow Russia's biggest food retailer by stores to avoid a major increase in debt burden as it plans to open between 800 and 1,000 stores in 2011 and renovate hundreds of outlets.

(Reuters)

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