24th Sep 2007 11:43
X5 Retail Group N.V.24 September 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN UPDATE ON SECONDARY OFFER TIMING AND APPOINTMENT OF NEW INDEPENDENT DIRECTOR Amsterdam, 24 September 2007 - X5 Retail Group N.V. (the "Group"), Russia'slargest food retailer in terms of sales announces that it does not now expect toundertake a Secondary Offering this year. The X5 Group Supervisory Board supported management's view on the SecondaryOffering. The Board will request the EGM of the Group's shareholders to delegateto the Supervisory Board the right to decide on the issue of up to US$ 1 billionin new equity during 2008. Lev Khasis, Group CEO, commented: "X5 Group intends to pursue a diversified financing strategy and a secondaryequity offering remains an option in the future. Nevertheless, there is nocompelling reason for us to launch a Secondary Offering now, as we have theresources available to finance previously reported expansion plans approved bythe Supervisory Board. The strong dynamics in EBITDA and net income growth givesadditional confidence in the Group's ability to fund organic growth andpotential M&As without resorting to a Secondary Offering in a near term future." Also today X5 Group announces the appointment of a second independent member ofthe Supervisory Board, Mr Carlos Criado-Perez. Mr Criado-Perez is the ExecutivePresident of Spanish retail chain Dinosol Supermercados and has previously beenChief Executive Officer of U.K. supermarket chain Safeway plc (1999-2004) andChief Operating Officer of Wal-Mart International (1998-1999). Lev Khasis commented: "The appointment of a second independent director of the Group's SupervisoryBoard will no doubt reinforce the investor community confidence in ourcompliance with best international standards of corporate governance. Also, asthe primary focus of our further activities is the consolidation of thesegmented Russian retail market, we hope that attracting such a highly qualifiedprofessional of international level will allow us to successfully accomplish ouraggressive expansion plans in the Russian market." - Ends - Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of30 June 2007, the Group had 539 company-managed "Pyaterochka" soft discountstores located in the Moscow (241), St. Petersburg (223) and other Russian areas(75), and 170 company managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 98 stores in Moscow. As of 30 June 2007, franchisees operated 591 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 leading company in the Russian food retail market by sales. The Group's Net sales for the 1H 2007 were US$ 2,348 million, up +49% vs. 1H2006. Pyaterochka chain provided US$ 1,306 million of net sales; the Perekrestokchain contributed US$ 1,042 million of 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] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
X5 Retail