Leading Dutch retailer Ahold has confirmed it faces losses as large as US$496m if its joint venture partner Velox Retail Holding fails to come good on its obligations.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
If Velox Retail Holding, Ahold’s Latin American JV partner, defaults on its obligations, Ahold will have to make a payment. Ahold’s “maximum contingent liability” in Argentina is US$496.2m.
In June Ahold conceded that its 15% forecast growth in net earnings per share (before currency fluctuation impact and the amortisation of goodwill) was “ambitious” and would hinge on developments in Argentina and Spain, as well as on in come from property sales.
