Belgian retailer Delhaize has announced that it has reached an agreement to sell its 49% shareholding in Singapore food retailer Shop N Save to Singapore retailer Cold Storage Singapore, a wholly owned subsidiary of the Hong Kong-based Dairy Farm group, for SGD44.1m (US$25.6m).
Under the same agreement Singapore-listed QAF will also sell its 51% stake in Shop N Save to Dairy Farm.
Delhaize said the sale would results in an estimated capital gain of €10.0m (US$11.8m) in the fourth quarter of 2003.
Shop N Save is the third-largest food retailer in Singapore. At the end of September 2003, Shop N Save operated 35 stores. In 2002, the chain generated sales of SGD237.5m and had 1,157 employees at year-end.
Delhaize acquired its 49% shareholding in Shop N Save in January 1999.
“We have been pleased with our partnership in Singapore and with the progress of our banner there. The attractive purchase proposal from Dairy Farm allows Delhaize to generate additional cash and to refocus on our two original Asian ventures in Thailand and Indonesia,” said Jean-Claude Coppieters, executive vice president of Delhaize.