The Arbitration Court of the Moscow Region granted the application of the Ministry of Industry and Trade of the Russian Federation to suspend the exercise of X5's corporate rights in its Russian subsidiary, Corporate Center X 5 LLC. This is stated in the company's message.
The court granted the application in full, but has not yet published the full text of its decision. Thus, the company is not aware of the specific content of the court's decision and the date of its publication, which serves as a starting point for the procedures provided for by law. However, it is already clear that the court's decision suspends X5's share rights in Corporate Center X 5 LLC and transfers X5's shares to the subsidiary itself.
The decision also means that non-Russian holders of depositary receipts and beneficiaries of the company [as of the date of issue of the full Court decision] will be able to receive shares of the subsidiary in proportion to their participation in X5, while Russian holders and ultimate owners of depositary receipts of the company [as of the date of issue of the full court decision] will be required to accept such distributable shares.
The Company is carefully studying the consequences and options for action within the legal framework arising from the court decision and will publish updated information immediately after the release of the full text of the Court decision. The company continues to strive to act in the interests of X5 shareholders and other interested parties, the report says.
The court's decision does not affect trading operations in Russia.
X5 Group is a Russian grocery retail company that operates stores of several retail chains. The company is also developing digital businesses.
As of March 31, 2024, the company had 24,884 stores under management. The network includes 21593 Pyaterochka stores, 978 Perekrestok supermarkets, 1616 Chizhik hard discounters and 612 Krasny Yar and Slata stores. The company also manages 61 distribution centers and 5,504 of its own trucks on the territory of the Russian Federation.
X5's net profit under IFRS for the first quarter of 2024 increased 2-fold to RUB 20.87 billion from RUB 9.69 billion a year earlier. Revenue increased by 27.3% to 886.22 billion rubles from 696.36 billion rubles, gross profit – by 27.1% to 212.56 billion rubles from 167.23 billion rubles, EBITDA – by 29.3% to 90.73 billion rubles from 70.19 billion rubles.
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