Ahold, 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 shareholdersâ€™ agreement with VRH. Following VRHâ€™s July 16 default on outstanding indebtedness owed to certain banks, Ahold was required to take over loans and purchase substantially all of VRHâ€™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, Aholdâ€™s direct stake in DAIH has increased from approximately 66% to 100%.
The takeover of loans and purchase of VRHâ€™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 â€“ 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.