The Moscow Arbitration Court granted the application of the Ministry of Industry and Trade of the Russian Federation, which asked to suspend the corporate rights of the Dutch company X5 Retail Group NV in relation to its Russian subsidiary LLC Corporate Center X5. This is stated in a statement by the Russian company.
“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 decision and the date of its publication, which serves as the starting point for the procedures provided for by law,” the statement said.
The Russian company added that after the publication of the full decision, the court “non-Russian holders of depositary receipts and beneficiaries of the company… will be able receive shares of the subsidiary in proportion to their participation in X5, while Russian holders and ultimate holders of the company’s depositary receipts will be required to accept such distributed shares.”
The Ministry of Industry and Trade said that they filed a lawsuit because the Russian subsidiary of X5 was included in the list of economically significant organizations, and the direct participation of the Dutch company “creates risks of harm to the Russian division of X5, Russia and its citizens.”
X5 Group is the largest food retailer in Russia by turnover. The company operates the Pyaterochka, Perekrestok, Chizhik, Krasny Yar and Slata retail chains in Russia. As of April 20, 2023, 47.86% of X5 was owned by CTF Holdings SA, associated with Alfa Group, and another 11.43% belonged to Axon Trust.
Tags: court deprived Dutch Retail Group rights subsidiary Russia manages Pyaterochka Perekrestok chains
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