Ahold has support for sale

19th June 2007, Comments 0 comments

19 June 2007, AMSTERDAM (AP) - Supermarket chain owner Royal Ahold NV said Tuesday its shareholders approved the sale of its U.S. Foodservice bulk food distributor to private investors for US$7.1 billion.

19 June 2007

AMSTERDAM (AP) - Supermarket chain owner Royal Ahold NV said Tuesday its shareholders approved the sale of its U.S. Foodservice bulk food distributor to private investors for US$7.1 billion.

The shareholders also agreed on the company's proposal to return EUR 3 billion to them through a cash payment and a reverse stock split. Investors will now receive a one-time dividend of EUR 1.89 per share.

Ahold - which owns the Giant and Stop & Shop chains in the U.S, as well as the Albert Heijn supermarkets in the Netherlands - announced in May that it would sell U.S. Foodservice to private equity firms Clayton, Dubilier & Rice Fund VII LP and Kohlberg Kravis Roberts & Co.

The disposal cuts ties between Ahold and the subsidiary whose accounting scandal caused it to overstate earnings by around US$1 billion from 1999 through 2002, pushing it to the brink of bankruptcy.

Chief Executive Anders Moberg, who took the helm after the fraud was revealed in 2003 and guided the company back to stability, is stepping down July 1.

Ahold shares were down 1.4 percent at EUR 9.73 in Amsterdam.

[Copyright AP 2007]

Subject: Dutch news

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