OREANDA NEWS. X5 Retail Group N.V. (the “Group”), Russia's largest food retailer in terms of sales announces that it does not now expect to undertake a Secondary Offering this year, the company's press service announced.

The X5 Group Supervisory Board supported the management’s view on the Secondary Offering. The Board will request the EGM of the Group’s shareholders to delegate to the Supervisory Board the right to decide on the issue of up to US$ 1 billion in new equity during 2008.

Lev Khasis, Group's CEO, commented: “X5 Group intends to pursue a diversified financing strategy and a secondary equity offering remains an option in the future. Nevertheless, there is no compelling reason for us to launch a Secondary Offering now, as we have the resources available to finance previously reported expansion plans approved by the Supervisory Board. The strong dynamics in EBITDA and net income growth gives additional confidence in the Group’s ability to fund organic growth and potential M&As without resorting to a Secondary Offering in a near term future.”

Also, on September 25 X5 Group announced the appointment of a second independent member of the Supervisory Board, Mr Carlos Criado-Perez.  Mr Criado-Perez is the Executive President of Spanish retail chain Dinosol Supermercados and has previously been CEO of U.K.'s supermarket chain Safeway plc (1999-2004) and Chief Operating Officer of Wal-Mart International .

Lev Khasis was quoted as saying: “The appointment of a second independent director of the Group’s Supervisory Board will no doubt reinforce the investor community confidence in our compliance with best international standards of corporate governance. Also, as the primary focus of our further activities is the consolidation of the segmented Russian retail market, we hope that attracting such a highly qualified professional of international level will allow us to successfully accomplish our aggressive expansion plans in the Russian market.”