Moscow, 25 December 2024 – PJSC X5 Corporate Center (“X5” or the “Company”), a leading Russian food retailer that operates the Pyaterochka, Perekrestok and Chizhik retail chains, has filed a request in court to extend the suspension of X5 Retail Group N.V.’s corporate rights in the Company, as the Company has not yet received the necessary regulatory approvals to carry out a compensation payment that is being sought by X5 Retail Group N.V.
The Company earlier received a request from X5 Retail Group N.V., seeking compensation in the amount of the market value of the Company’s shares that were not distributed among individuals and entities who became direct owners of X5 shares. To make this payment, the Company needs to have the required regulatory approvals, which it has not yet received. Meanwhile, the period of suspension of X5 Retail Group N.V.’s corporate rights in accordance with the Russian Federal Law No. 470-FZ, adopted on 4 August 2023 concerning the possible distribution of ownership interests in Russian entities to their ultimate owners (the “Law”), which was in force at the time of the court decision, expires on December 31, 2024. In order to preserve the possibility of making the compensation payment in accordance with the request and interests of X5 Retail Group N.V., the Company will use the right to extend the duration of the suspension procedures as provided for in the November 2024 amendments to the Law.
The Company confirms its readiness to pay compensation to X5 Retail Group N.V. after receiving the necessary regulatory approvals and considers the extension of the suspension of the latter’s corporate rights as a necessary step to preserve the possibility of such payment to X5 Retail Group N.V.
Any measures aimed at extending the suspension of X5 Retail Group N.V.’s corporate rights in the Company do not impact the Company’s plans, execution of its development strategy or its operational activities.
The Company also confirms that the trading of shares of PJSC X5 Corporate Center will start on January 9, 2025.