Dividend prospects for X5 still unclear - IR
MOSCOW. April 17 (Interfax) - A return to dividend payments for X5 Retail Group at the end of 2024 is unlikely, and prospects for 2025 are also unclear, Head of the X5 Investor Relations, Maria Yazeva, said on RBC Pro on Tuesday.
"There are no deadlines [for the resumption of dividends] yet, but it is very unlikely [dividends should be expected] at the end of 2024," she said.
As for a return to paying dividends in 2025, this will depend on a number of factors, Yazeva said. Among them are the court decision based on proceedings initiated by the Trade and Industry Ministry against X5 Retail Group on the suspension of corporate rights for Corporate Center X5 LLC, the possibility of the company's Dutch holding to demand compensation for a share in the Russian legal entity that is not distributed among its Russian owners, and the potential amount of this compensation if such a claim is made.
"We don't even know the shareholder structure that X5 could potentially have, so it's strange now to talk about to whom and how much in dividends we will pay," she said.
Russia's Industry and Trade Ministry filed a lawsuit against X5 in March, and a court hearing is scheduled for April 23.
Previously, the LLC was included in the list of economically significant organizations (ESO), which implies the possibility of transferring shares in Russian organizations to their ultimate owners.
If the claim is satisfied, the LLC's shares will be distributed between GDR holders and the ultimate owners of X5. In addition, it is assumed that upon completion of the trial, the subsidiary will receive the status of an open joint-stock company and a listing on the MOEX.
Previously, the X5 Supervisory Board recommended that shareholders not distribute dividends for 2023. X5 also did not pay dividends for either 2022 or 2021.
"We did not pay dividends in 2022-2023, and in the base case the undistributed funds will be distributed to shareholders one way or another. This could be in the form of dividends or perhaps in the form of compensation to the Dutch company, which is also a creation of value for shareholders," Yazeva said.
X5 Retail Group is the largest retailer in Russia in terms of revenue. The leading shareholder of the company is a division of Alfa-Group CTF Holdings S.A., with 47.86%.