10th Apr 2007 07:02
X5 Retail Group N.V.10 April 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN X5 RETAIL GROUP N.V. GAINS CONTROL OVER 40 PYATEROCHKA STORES IN CHELYABINSK Amsterdam, 10 April 2007 - X5 Retail Group N.V., Russia's largest food retailerin terms of sales (LSE ticker: "FIVE") , announced today that it signed anagreement with the owners of Pyaterochka franchises in Chelyabinsk to create ajoint company which will merge all the Pyaterochka's assets in Chelyabinsk andYekaterinburg. According to the terms of the agreement, X5 Retail Group controls 51 percent ofthe joint company and the owner of Pyaterochka franchises in Chelyabinskreceives 49 percent, which X5 Retail Group will purchase according to apre-arranged two-step formula of 24 percent in 2008 and 25 percent in 2009. For X5 Retail Group, the initial investment into the joint company consists of26 % of Pyaterochka chain in Chelyabinsk and 100 % of Pyaterochka chain inYekaterinburg. The owner of Pyaterochka franchises in Chelyabinsk invests 74 %of Pyaterochka chain in Chelyabinsk. The transaction is subject to approval of Federal Antimonopoly Service (FAS). "This deal which gives us control over 40 Pyaterochka stores in Cheliabinsk withtotal net selling space of 13,811 sq. m.(1), is be the first case of the Group'sbuy-out of its franchise stores in line with the Company's M&A strategy focusinginter alia on selective buy-out of certain franchises in strategically importantRussian regions," said Andrei Gusev, Group Director for Mergers, Acquisitionsand Business Development. "The creation of an Urals cluster on the base ofChelyabinsk and Yekaterinburg stores allows us to successfully develop our chainin the Urals market which is not any smaller than the St. Petersburg market." - End - Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of31 March 2007, the Group had 512 company-managed "Pyaterochka" soft discountstores located in the Moscow (232), St. Petersburg (215) and other Russian areas(65), and 169 company-managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 99 stores in Moscow. As of 31 March 2007, franchisees operated 533 Pyaterochka branded stores acrossRussia and Kazakhstan. Perekrestok had 10 stores operated by franchisees in theMoscow area. Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 tocreate the clear leader in the Russian food retail market. The Group's pro forma net sales for the FY 2006 were $3,485 million, up +47% vs.2005 (preliminary management accounts). Pyaterochka chain provided US $1,973million of net sales, while the Perekrestok chain contributed US $1,512 millionof net sales. Forward looking statements: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identifiedby 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 otherwords of similar meaning. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, a number of which are beyond X5Retail Group N.V.'s control. As a result, actual future results may differmaterially from the plans, goals and expectations set out in theseforward-looking statements. Any forward-looking statements made by or on behalf of X5 Retail Group N.V.speak only as at the date of this announcement. Save as required by anyapplicable laws or regulations, X5 Retail Group N.V. undertakes no obligationpublicly to release the results of any revisions to any forward-lookingstatements in this document that may occur due to any change in its expectationsor to reflect events or circumstances after the date of this document. Enquiries to: X5 Retail Group N.V. Gennady Frolov Head of Corporate Communications Office +7-495 950-5577 ext. 10130 Mobile +7 495 998 3335 Email [email protected] -------------------------- (1) As of 31 March 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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