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X5 Retail Group [LSE: FIVE], Russia's largest food retailer, said on Wednesday it had raised $1.16 billion from newly issued ordinary shares in the form of Global Depositary Receipts (GDRs).
The group, which operates the Pyatyorochka and Perekryostok retail food chains in Russia, said the proceeds raised would go to finance the purchase of Dutch company Formata Holding B.V., which owns the Karusel hypermarket chain, valued at $970 million.
X5 Retail Group raised $1.03 billion from floating 48.11 million GDRs, which were almost entirely purchased by the group's shareholders who exercised their priority right. Proceeds from the placement of treasury stock in the form of GDRs brought the group an additional $132 million, the retailer said.
Russian consortium Alfa Group is a key shareholder in X5 Retail, holding 48.6% of the company's stock.
X5 Retail reported on April 17 that its net profit calculated to International Financial Reporting Standards increased 41%, year-on-year, in 2007 to $144 million, revenue climbed 53% to $5.32 billion, gross profit went up 51% to $1.4 billion, and EBITDA (earnings before interest, taxes, depreciation and amortization) grew 62% to $479 million.
MOSCOW, May 7 (RIA Novosti)
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