X5 Group Shareholders Unblock Sale Talks

X5 Group was exploring a possible sale of a minority stake in its discount grocery business

X5 Retail Group NV shareholders have once again started discussing a possible sale of a minority stake in its discount grocery business, people familiar with the matter said, as Russia's largest food retailer looks to raise funds for expansion.

X5 has been exploring a sale of the stake in its Pyaterochka discount grocery chain since at least 2021, but no deal has materialized so far.

The stake could be worth up to $3 billion

Sources added that the stake could be worth up to $3 billion, but cautioned that no transaction is certain and that talks could still fall apart.

In 2022, Pyaterochka generated sales of 2.5 trillion rubles, accounting for more than half of X5's total revenue.

X5 Group remains committed to its growth strategy

X5 declined to comment. Representatives of its shareholders, including the payout mogul Mikhail Fridman and the United States private equity firm TPG, did not immediately respond to requests for comment.

X5, which has a market capitalization of around $9 billion, has also been weighing an initial public offering of its shares in Moscow as part of its funding plans.