Result of Extraordinary General Meeting

15 December 2016

 

Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, held an Extraordinary General Meeting of Shareholders (“EGM”) on Thursday, 15 December 2016, at Redwood House, St Julian’s Avenue, St Peter Port, Guernsey, Channel Islands. 

The following resolution was proposed as a special resolution and was passed by the requisite majority in a poll:

  1. To approve the removal of the Company from the Register of Companies in Guernsey for the purposes of becoming registered as a body corporate under the laws of Cyprus and to approve with effect from the date of the issue of the temporary certificate of continuation by the Registrar of Companies of Cyprus (a) the amendments into the memorandum of incorporation of the Company, (b) new articles of association of the Company in substitution for the existing articles of incorporation of the Company, (c) the change of name of the Company to Etalon Group Public Company Limited and respective update into the memorandum of incorporation of the Company as more particularly set out in the Notice of EGM.

The Board of Directors of Etalon Group Limited recommended that shareholders approve the change in domicile after considering changes to legislation in the countries where Etalon Group operates, and in line with ongoing efforts to strengthen further the Company’s corporate governance, as well as to optimise overhead costs. Based on comprehensive legal and tax research, the Company understands that investors’ rights and protections will be unaffected by the change in domicile, that LSE listing rules will continue to apply, and that there will be no impact to Etalon Group’s global depositary receipt (“GDR”) programme (including no requirement to exchange GDRs).

This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/

Etalon Group IR Team

T: +44 (0) 20 8123 1328<br/> E: info@etalongroup.com

EM

Sam VanDerlip<br/> T: +44 7554 993 032<br/> T: +7 499 918 3134<br/> E: vanderlip@em-comms.com 

 

About Etalon Group

Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations. The Company focuses on middle class residential real estate in the Moscow and St. Petersburg metropolitan areas, where it operates through Etalon Invest and LenSpetsSMU subsidiaries. With a 29-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry.

Since its inception, Etalon Group has commissioned 5 million sqm. Etalon Group's CAGR for deliveries in 2010-2015 was 19%.

Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net debt as of 31 December 2015 was RUB 7,397 million.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs 5,000 people, and its nationwide sales and marketing network covers 37 Russian cities.

As of 31 December 2015, Etalon Group's portfolio comprised 28 projects, with a total of 2.72 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 104,384 million.

For the year ended 31 December 2015, Etalon Group's new contract sales totalled 385 ths sqm, or RUB 35,080 million. Deliveries in 2015 totalled 502 ths sqm.

The Company recorded revenue of RUB 42.4 billion and EBITDA of RUB 7.7 billion for the year ended 31 December 2015.

Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.

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16 December 2016