5 May 2010 07:00
X5 GAINS OPERATIONAL CONTROL OF PEREKRESTOK EXPRESS CONVENIENCE STORES WITH ADDITIONAL 20% EQUITY INTEREST
Amsterdam, 05 May 2010 - X5 Retail Group N.V., Russia's largest food retailer in terms of sales (LSE ticker: "FIVE"), today announced an agreement to acquire an additional 20% stake in Express Retail for a total consideration of USD 6 million. Express Retail is a joint venture operating 52 Perekrestok-Express convenience stores in Moscow and Moscow region and developing several franchising projects in this segment. The purchase brings X5's total ownership interest to 60% of Express Retail company, with an option to acquire the remainder of the business by 2013.
X5's Director for M&A and Business Development, Andrey Gusev, commented: "This transaction gives X5 operational control over Perekrestok-Express stores. Consolidating this business as part of X5 will enable further efficiencies and a more integrated approach to managing convenience stores as part of our multi-format strategy."
For reference: In 2007 X5 entered into an agreement with a group of private investors to establish a joint venture focused on developing convenience stores in Moscow and Moscow region. X5's initial stake in the joint company totaled 40%, and the agreement provided X5 with the option to purchase the remaining equity until 2013. At 31 March 2010, Express Retail operated 52 Perekrestok-Express stores with selling space ranging between 100 and 200 sq.m. (in total approx. 9 thousand sq.m. of net selling space). Valery Tarakanov will continue to serve as general director of the Express Retail business, reporting directly to Lev Khasis, CEO of X5 Retail Group.
For further details please contact |
|
Anastasiya I IR manager Tel.: +7 (495) 980-2729, ext. 22 452 e-mail: anastasiya.i@x5.ru
| Maxim Trapeznikov Head of PR Department Tel.: +7 (495) 662-8888, ext. 31 262 e-mail: maxim.trapeznikov@x5.ru
|
Note to Editors:
X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.
As at 31 March 2010, X5 had 1,399 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 1,063 soft discount stores, 276 supermarkets and 60 hypermarkets.
As at 31 March 2010, X5's franchisees operated 640 stores across Russia.
For the full year 2009 X5's net sales totaled USD 8,717 mln, EBITDA reached USD 736 mln, and net profit amounted to USD 165 mln. For the first quarter 2009 X5's net retail sales reached USD 2,534 mln.
X5 Shareholder structure is as follows: Alfa Group - 47.9%, founders of Pyaterochka - 23.1%, X5 Management - 1.9%, treasury shares - 0.1%, free float - 27.0%.
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 Retail 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 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail 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.