Amsterdam, 25 April 2024 – X5 Retail Group N.V. (“X5” or the “Company”, LSE and MOEX ticker: FIVE), which operates the Pyaterochka, Perekrestok and Chizhik retail chains, announces that the Arbitration Court of the Moscow Region (the “Court”) has satisfied the claim of the Ministry of Industry and Trade of the Russian Federation to suspend the Company’s corporate rights in its Russian subsidiary, X5 Corporate Centre LLC (the “Subsidiary”).
The claim was brought under the Russian Federal Law No. 470-FZ of 4 August 2023 (the “Law”).
While the Court has satisfied the claim in full, it has not yet issued the full text of the decision. As a result, the Company is not aware of its specific content and the date of issue, which serves as the starting point for the procedures of the Law. Nevertheless, it is already understood that the Court decision suspends the Company’s shareholder rights in the Subsidiary and transfers the Company’s shares in the Subsidiary to the Subsidiary itself.
The decision also means that Russian holders and ultimate owners of the Company’s depositary receipts (DRs) on the date of issue of the full text of the Court decision will be required to accept a distribution of shares in the Subsidiary proportionate to their shareholding in the Company, while the Company’s non-Russian holders and beneficiaries on the date of issue of the full text of the Court decision are granted an option to do so.
The Company is closely examining the consequences and legal options following the Court decision and will issue an update as soon as the full text of the Court decision text is issued. In doing so, the Company remains committed to acting in the best interests of X5 shareholders and other stakeholders.
The Court decision has no impact on retail operations in Russia.