MOSCOW, April 22 (RIA Novosti) - X5 Retail Group [LSE: FIVE], Russia's largest food retailer, said on Tuesday it would float $1 billion in Global Depositary Receipts (GDRs) on the London Stock Exchange to finance an asset purchase.
The group, which operates the Pyatyorochka and Perekryostok retail food chains in Russia, will float 48 million new GDRs to finance the purchase of Formata Holding B.V., which owns the Karusel hypermarket chain, valued at $970 million.
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.
