International food retailer and foodservice operator Ahold has assumed full control of Disco Ahold International Holdings (DAIH), its former Latin American joint venture company with Velox Retail Holdings (VRH).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Ahold announced its intention on 17 July to terminate its shareholders’ agreement with VRH. Following VRH’s 16 July 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 about US$490m.
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 US GAAP estimated at €350-450m (US$340-437m), 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 €2.1bn. In addition, Ahold has a 70% stake in 117 Santa Isabel supermarkets in Chile (76), Peru (30) and Paraguay (11) with 2001 sales of €771m.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
