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. Last Updated: 07/27/2016

X5 Puts Off $1Bln Share Issue

X5 Retail Group said Monday that it would not proceed with a secondary share offering worth $1 billion this year and that it would happen no earlier than 2008.

"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," X5 CEO Lev Khasis said.

"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 the near future," Khasis said.

The company had earlier planned to place the issue in October or November to finance the potential acquisition of the Carousel hypermarket chain.

The option to buy Carousel becomes effective Jan. 1, 2008, although sources close to Carousel have said the U.S. retail giant Wal-Mart is a potential buyer.

X5, controlled by billionaire Mikhail Fridman's Alfa Group, said a secondary equity offering "remained an option." It said its supervisory board would decide on the issue during 2008.

X5 reported a 74 percent year-on-year increase in first half core earnings to $212 million, including executive share option scheme costs.

X5 also said Monday that its audited first-half net profit more than doubled to $41 million from $19 million in the first half of 2006.