21st Dec 2007 08:10
X5 Retail Group N.V.21 December 2007 X5 RETAIL GROUP N.V. COMPLETES ACQUISITION OF KORZINKA AND STRANA GERKULESIA RETAIL CHAINS Amsterdam, 21 December 2007 - X5 Retail Group N.V., Russia's largest foodretailer in terms of sales (LSE ticker: "FIVE"), announced today that it hasreceived all the necessary regulatory approvals, including approval by theFederal Antimonopoly Service (FAS), and completed its acquisition of Korzinka ("Basket") and Strana Gerkulesia ("Land of Hercules") retail chains. As it was announced earlier, X5 Retail Group acquires 22 Korzinka storesoperating in the Lipetsk region with the net selling space of 20.0 thousand sq.m. 15 stores will be integrated into the Group's discounter format, six intothe supermarket format and one store will be added to the hypermarket network.The total area of the Korzinka outlets is 38.0 thousand sq. m, of which 12.4thousand sq. m. are owned. X5 Group also acquires a total of 29 discounter stores under Strana Gerkulesiabrand with the total net selling space of 12.9 thousand sq. m, of which 26 areoperational and three are scheduled for opening in Q1 2008. Five stores arelocated in Moscow, 16 stores operate close to Moscow and eight stores arelocated in other areas of the Moscow region and in Tver. The total purchasedarea is 27.1 thousand sq. m, which also includes an office building andconstruction in progress that potentially can be converted into selling space inthe future. Over 11 thousand sq. m. of the total area are owned. Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. TheCompany was created as a result of a merger between Pyaterochka (soft discounterchain) and Perekrestok (supermarket chain) on 18 May 2006. As of 30 September 2007, the Group had 573 company-managed soft discount storeslocated in Moscow (256), St. Petersburg (234) and other Russian areas (83), 163company managed supermarkets across Central Russia and Ukraine, including 101stores in Moscow (Moscow region and Yaroslavl region), and 13 company managedhypermarkets. As of 30 September 2007, X5's franchisees operated 627 stores across Russia andKazakhstan. The Group's net sales for the first nine months 2007 reached USD 3,618 million,an increase of 50% year-on-year. Gross profit for the period totaled USD 946million, EBITDA amounted to USD 311 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 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. For further details please contact Anna Kareva Alexandra GalimovaIR Director Head of PR DepartmentTel.: +7 (495) 980-2729, ext. 22 162 Tel: +7 (495) 950-5577e-mail: [email protected] e-mail: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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