REG - X5 Retail Group N.V - X5's rights in Russian subsidiary suspended

X5 Retail NVAnnouncement

25/04/2024 10:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240425:nRSY0242Ma&default-theme=true

RNS Number : 0242M  X5 Retail Group N.V.  25 April 2024

X5 RETAIL GROUP N.V. ANNOUNCES SUSPENSION OF CORPORATE RIGHTS IN ITS RUSSIAN
SUBSIDIARY FOLLOWING COURT DECISION

 

Amsterdam, 25 April 2024 - X5 Retail Group N.V. ("X5" or the "Company", LSE
and MOEX ticker: FIVE), which operates the Pyaterochka, Perekrestok and
Chizhik retail chains, announces that the Arbitration Court of the Moscow
Region (the "Court") has satisfied the claim of the Ministry of Industry and
Trade of the Russian Federation to suspend the Company's corporate rights in
its Russian subsidiary, X5 Corporate Centre LLC (the "Subsidiary").

The claim was brought under the Russian Federal Law No. 470-FZ of 4 August
2023 (the "Law").

While the Court has satisfied the claim in full, it has not yet issued the
full text of the decision. As a result, the Company is not aware of its
specific content and the date of issue, which serves as the starting point for
the procedures of the Law. Nevertheless, it is already understood that the
Court decision suspends the Company's shareholder rights in the Subsidiary and
transfers the Company's shares in the Subsidiary to the Subsidiary itself.

The decision also means that Russian holders and ultimate owners of the
Company's depositary receipts (DRs) on the date of issue of the full text of
the Court decision will be required to accept a distribution of shares in the
Subsidiary proportionate to their shareholding in the Company, while the
Company's non-Russian holders and beneficiaries on the date of issue of the
full text of the Court decision are granted an option to do so.

The Company is closely examining the consequences and legal options following
the Court decision and will issue an update as soon as the full text of the
Court decision text is issued. In doing so, the Company remains committed to
acting in the best interests of X5 shareholders and other stakeholders.

The Court decision has no impact on retail operations in Russia.

 

 

 

 

 

 

 

 

Note to Editors:

 

X5 Retail Group N.V. (LSE and MOEX: FIVE; Expert RA - ruAAA; ACRA - AAA(RU))
is a leading Russian food retailer. The Company operates proximity stores
under the Pyaterochka brand, Perekrestok supermarkets and Chizhik hard
discounters. X5 provides an omnichannel experience to its customers,
integrating retail stores and e-commerce through its businesses Vprok.ru,
5Post, express delivery and Mnogo Lososya.

As of 31 March 2024, X5 had 24,884 Company-operated stores. It has the leading
market position in both Moscow and St Petersburg and a significant presence in
the European part of Russia, as well as a growing presence in the Russian Far
East. Its store base includes 21,593 Pyaterochka proximity stores, 978
Perekrestok supermarkets, 1,616 Chizhik hard discounters and 612 Krasny Yar
and Slata stores. The Company operates 61 DCs and 5,504 Company-owned trucks
across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 378
thousand people.

For the full year 2023, revenue totalled RUB 3,145,859 million (USD 36,903
million*), EBITDA pre-IFRS 16 reached RUB 214,764 million (USD 2,519
million*), and net profit pre-IFRS 16 for the period amounted to RUB 90,284
million (USD 1,059 million*). In Q1 2024, revenue totalled RUB 886,220 million
(USD 9,766 million**), EBITDA pre-IFRS 16 reached RUB 55,266 million (USD 609
million**), and net profit pre-IFRS 16 amounted to RUB 24,015 million (USD 265
million**).

 

Forward-looking statements

This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the fact that they do not only relate to historical or current
events. Forward-looking statements often use words such as "anticipate",
"target", "expect", "estimate", "intend", "expected", "plan", "goal",
"believe", or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances, a number of which are
beyond X5 Group N.V.'s control. As a result, actual future results may differ
materially from the plans, goals and expectations set out in these
forward-looking statements.

Any forward-looking statements made by or on behalf of X5 Group N.V. speak
only as of the date of this announcement. Save as required by any applicable
laws or regulations, X5 Group N.V. undertakes no obligation publicly to
release the results of any revisions to any forward-looking statements in this
document that may occur due to any change in its expectations or to reflect
events or circumstances after the date of this document.

 

*FX rate: 85.2466 USD/RUB

**FX rate: 90.7471 USD/RUB

 

  For further details please contact:
 Polina Ugryumova                                                 Maria Yazeva
 Head of Corporate Finance and IR                                 Investor Relations Officer

Tel.: +7 (495) 662-88-88 ext. 13-312
Tel.: +7 (495) 662-88-88 ext. 13-147

e-mail: Polina.Ugryumova@x5.ru (mailto:Polina.Ugryumova@x5.ru)
e-mail: Maria.Yazeva@x5.ru (mailto:Maria.Yazeva@x5.ru)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCQKPBQFBKKPQB