Ahold Public Offer for ICA Shares in Sweden Successfully Concluded; North European Joint Venture Expected to be Operational by End of April.Business Editors ZAANDAM, The Netherlands / STOCKHOLM, Sweden--(BUSINESS WIRE)--March 24, 2000--Royal Ahold a·hold n. Hold; grip: "I knew I could make it all right if I got . . . back to the hotel and got ahold of that bottle of brandy" Jimmy Breslin. (NYSE NYSE See: New York Stock Exchange : AHO), the international food retailer, today announced the public offer by the 50/50 joint venture ICA Ica (ē`kä), city (1993 pop. 108,724), capital of Ica dept., SW Peru, on the Pan-American Highway. It is a commercial center for the cotton, wool, and wine produced in the region. There are several summer resorts nearby. Ahold Holding AB for the shares in leading Scandinavian food retailer ICA AB ICA (Inköpscentralernas aktiebolag) AB is a Swedish corporate group in the grocery business. The company was started in 1938, based on a business model which was introduced by Hakonbolagen since 1917. has been successfully concluded. Close to 99% of the voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. and the share capital in ICA AB has been offered at the time of closing of the tender offer period, March 21, 2000. The issue of new stock by ICA Forbundet Invest AB, the investment company of associated ICA retailers, was also sufficiently subscribed. The condition regarding the acceptance of the offer (more than 90% of the voting rights and share capital in ICA AB) has now been met. The European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community is expected to issue its opinion by April 6, 2000 and all remaining conditions are expected to be met during April. The Boards of Ahold and ICA confirmed today that the overall transaction, in accordance with the prospectus, is expected to be completed, including payment, by April 28, 2000. Once completed, Ahold will hold a 50% interest in ICA Ahold Holding AB, in which all activities of the ICA Group have been brought together. The other 50% of ICA Ahold Holding AB will be held by Canica, the investment company of the Norwegian Hagen family, and by ICA Forbundet, the association of ICA retailers. Ahold will pay a total of Euro 1.8 billion for its 50% interest in ICA. The impact of the transaction on Ahold's earnings per share growth is expected to be positive in the year 2000, growing gradually thereafter. The ICA Group is market leader in Sweden and holds a prominent position in Norway. Over 3,100 supermarkets, hypermarkets and discount stores work together in the ICA Group. Annual sales of the ICA Group total Euro 6.7 billion. In addition the ICA Group holds a 50% interest in Statoil Retail with sales of approximately Euro 2.5 billion. Statoil Retail operates 1,500 gasoline stations with convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. in Sweden, Norway and Denmark. Once the transaction is completed, annual Ahold sales in Europe will increase to over Euro 20 billion. Royal Ahold press releases may contain `forward-looking' statements. Actual results may differ from such statements as they may have been influenced by factors beyond the Company's ability to control, as more fully discussed in Royal Ahold's Annual Report on Form 20-F. |
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