ZAANDAM, The Netherlands, Aug. 9, 2002 (PRIMEZONE) -- Ahold (NYSE:AHO), the international food retailer and foodservice operator, today announced it has assumed full control of Disco Ahold International Holdings (DAIH), its former Latin American joint venture company with Velox Retail Holdings (VRH).
Ahold announced its intention on July 17 to terminate its shareholders' agreement with VRH. Following VRH's July 16 default on outstanding indebtedness owed to certain banks, Ahold was required to take over loans and purchase substantially all of VRH's shares in DAIH for a total consideration of approximately USD 490 million. The aforementioned requirements have now been met and the agreement between VRH and Ahold has been brought to a formal close. As a consequence, Ahold's direct stake in DAIH has increased from approximately 66% to 100%.
The takeover of loans and purchase of VRH's shares in DAIH will generate a substantial charge in the second quarter of 2002 under Dutch and U.S. GAAP estimated at Euro 350 450 million, as the amount paid exceeds the fair value of the DAIH shares.
Disco Ahold International Holdings operates over 350 supermarkets in four Latin American countries: Argentina, Chile, Peru and Paraguay. Ahold now wholly owns 236 Disco supermarkets in Argentina with 2001 sales of Euro 2.1 billion. In addition, Ahold has a 70% stake in 117 Santa Isabel supermarkets in Chile (76), Peru (30) and Paraguay (11) with 2001 sales of Euro 771 million.
Certain statements in this press release are "forwardlooking statements" within the meaning of U.S. federal securities laws and are intended to be covered by the safe harbors created thereby. Those forwardlooking statements include, but are not limited to, (implicit) statements as to expected charges and estimates in respect of fair value of certain shares, expected increases in sales, operating results and market shares, estimates in respect of earnings (growth) and earnings per share, and synergies to be realized from announced acquisitions. Those forwardlooking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in those forwardlooking statements. Such factors include, but are not limited to, the effect of general economic conditions, and changes in interest rates in the countries in which Ahold operates, particularly in Latin America, increased competition in the markets in which Ahold operates, changes in marketing methods utilized by competitors, difficulties encountered in the integration of new acquisitions, the behavior of other market participants and the actions of government regulators. Fluctuation in exchange rates between the Euro and the other currencies in which Ahold's assets, liabilities or results are denominated, in particular the U.S. dollar and the Argentine peso, can also influence the actual results as can other factors discussed in Ahold's public filings. Many of these factors are beyond Ahold's ability to control or estimate precisely. Readers are cautioned not to place undue reliance on such forwardlooking statements, which only speak as of the date of this press release. For a more detailed discussion of such risks and other factors, see Ahold's Annual Report on Form 20F for its most recent fiscal year. Ahold does not undertake any obligation to release publicly any revisions to those forwardlooking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Outside The Netherlands Koninklijke Ahold N.V., being its registered name, presents itself under the name of "Royal Ahold" or simply "Ahold".