1st Mar 2007 07:02
X5 Retail Group N.V.01 March 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN X5 Retail Group n.v. announces NEW Employee stock option program Amsterdam, 1 March 2007 - X5 Retail Group N.V., Russia's leading groceryretailer, today announced the launch of a new employee stock option program(ESOP) for its key executives and employees. Under the terms of the plan, itsbeneficiaries may be granted options to acquire the economic benefit in, orreceive the cash value of, a certain number of GDRs. The grant of any suchoption to any beneficiary, and the number of GDRs subject to such option, willbe subject to certain performance criteria specific to such beneficiary beingmet, including, inter alia, X5 Retail Group achieving certain EBITDA, storeroll-out and cost containment or reduction targets. The total number of share options is capped at 10,824,000 GDRs. The program willrun through to 18 May 2010. The options will be granted in 4 tranches, with thevesting dates on 18 May 2007, 18 May 2008, 18 May 2009 and 18 May 2010correspondingly. The exercise price of the first options vesting on 18 May 2007will be $18 per GDR (the share price at the date of the merger on 18 May 2006),the exercise price of the consequent three option tranches will be equal to theaverage market value of the shares represented in GDRs during 30 days prior tothe vesting date of each of these options. The total number of participants is not limited and is expected to vary duringits lifetime, but it is anticipated to cover about one hundred top employees andmanagers of the Company. Lev Khasis, Group CEO commented, "Following the final closure of the previous ESOP with all termination paymentsfully made to date, we are pleased to announce the new ESOP program which isdesigned to be both highly motivating our key managers and advantageous to theCompany. The program will cover not only top level, but also mid levelmanagement since it is very important to adequately motivate all key members ofour highly professional management team in view of our aggressive plans offurther growth to become the leader of not just fragmented, but of theconsolidated Russian food retail market in a medium term perspective." Herve Defforey, Chairman of Supervisory Board of X5 Retail Group N.V. added, "Based on the experience and best practice of leading international companies,the Supervisory Board believes that it is critical to align interests of keyexecutives and shareholders by giving X5 managers an opportunity of sharing thebenefits of the Group's future progress and success, as well as to attract topinternational talent. We are sure that the new ESOP will enable us to meet theseobjectives." - Ends - Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of31 December 2006, the Group had 451 company-managed "Pyaterochka" soft discountstores located in the Moscow (222), St. Petersburg (204) and Yekaterinburg (25)areas, and 168 company-managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 100 stores in Moscow. As of 31 December 2006, franchisees operated 605 Pyaterochka branded storesacross Russia, in Ukraine and Kazakhstan. Perekrestok had 10 convenience storesoperated by franchisees in the Moscow 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 +7 495 984 6956 ext.2093 Mobile +7 495 998 3335 Email [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
X5 Retail