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Detsky Mir to purchase shares amounting up to $49 mln from Moscow Exchange

Detsky Mir Group is a multi-format omnichannel retailer operating on the market of children’s goods in Russia, Kazakhstan, and Belarus

MOSCOW, November 14. /TASS/. The board of directors of Detsky Mir has approved the launch of a buyback program, Russia’s children's goods retailer said in a statement on Monday.

"The Board of Directors of the company unanimously approved today a launch of an open market buyback program of its ordinary shares listed on the Moscow Exchange totaling up to 3 billion rubles ($49 mln) over a six-months period unless extended or terminated by the company earlier," the statement said.

The decision was driven by the sharply increased volatility in the company’s shares over the course of the last several trading sessions, Detsky Mir said.

The purchases of shares under the program will be made for the account of "DM Capital" LLС a direct wholly-owned subsidiary of the company by broker or brokers.

Earlier, Detsky Mir said it planned a reorganization into a private firm in the form of a spin-off of LLC Detsky Mir as a subsidiary operating company. Detsky Mir will continue its operations in children’s food and non-food product retail and will be able to focus on developing its existing retail chain, as well as to manage its business in an efficient and flexible way, the company explained. As a result of the reorganization, LLC Detsky Mir will receive assets required to conduct business activities. Upon completion of the reorganization, it is planned that shareholders of the public company Detsky Mir will be offered the opportunity to exchange their shares for shares in a subsidiary of PJSC Detsky Mir that will hold a 100% interest in the private company LLC Detsky Mir. The terms of the exchange offer will be determined by the company’s Board of Directors and if approved, will be announced to shareholders in subsequent communications.

Detsky Mir Group is a multi-format omnichannel retailer operating on the market of children’s goods in Russia, Kazakhstan, and Belarus. The group comprises the Detsky Mir and the Detmir Pickup retail chains, the detmir.ru online store and marketplace, as well as the Zoozavr pet supplies retail chain. As of June 30, 2022, the total number of the group’s stores amounted to 1,123 across 442 cities and towns in Russia, Kazakhstan and Belarus. The group’s total selling space was 981,000 sq. m.