X5 Retail Group to delist GDRs from LSE

MOSCOW. Sept 3 (Interfax) - X5 Retail Group N.V., the Netherlands-based former holding company of Russia's largest retailer X5, has announced plans to delist its Global Depositary Receipts (GDR) from the London Stock Exchange.

The company also expects the listing of its GDRs on the Moscow Exchange to be cancelled simultaneously.

Under UK listing rules, the delisting can take effect on October 1, 2024 at the earliest, the company said in a press release.

The decision to delist follows the resignation of The Bank of New York Mellon (BNY) as depositary for the company's GDR program. If a successor depositary is not appointed by September 18, 2024, BNY will be entitled to serve a notice to terminate the GDR program.

Since receiving the notice of BNY's resignation in June, X5 Retail has made extensive efforts to identify and appoint a successor depositary, but it now believes that it will be easier to appoint a successor depositary if the listing is cancelled, the company said.

The company also said it believes that it is preferable to retain the GDR program, albeit with unlisted GDRs, rather than have the program terminated.

Furthermore, company said there has not been any active trading in its GDRs for about 30 months, so it has concluded that delisting will have little significant impact on GDR holders' ability to trade the GDRs.

The assets of X5, which operates the Pyaterochka, Perekrestok and Chizhik retail chains, are now managed by PJSC X5 Corporate Center. The transfer of control took place after a court ruling that suspended the Dutch company's corporate rights at the retailer, which the Russian government declared an economically significant organization in March 2024.

The Russian company is continuing to take requests from the holders of X5 Retail Group N.V. GDRs for distribution of shares in PJSC X5 Corporate Center at ratio of 1 to 1.