USA: Buyout of Delhaize America completed by Delhaize after shareholders are sweetened

The stakes for Delhaize America , originally laid out during September, have been raised in a bid to finalise a buyout of minority shareholders by parent company Delhaize . The deal offered by Belgium's largest retailer is now valued at €2.2bn, raising the share value of the US subsidiary by 6%. The previous offer of 0.35 of a Delhaize share for every share in Delhaize America devaluated the US company, and was not enough to sway the minority shareholders who control 55% of the equity and 45% of the voting rights. Now, however, they have been convinced by an opportunity to gain some ready cash when Delhaize repurchases 10% of its stock for €400m and a deal which provides 0.40 of a share in the parent company for every share in Delhaize America.In addition, Delhaize has offered a full 2000 dividend for Delhaize shareholders if the deal is completed by May, when the next annual meeting is held.

November 20, 2000

The stakes for Delhaize America, originally laid out during September, have been raised in a bid to finalise a buyout of minority shareholders by parent company Delhaize. The deal offered by Belgium’s largest retailer is now valued at €2.2bn, raising the share value of the US subsidiary by 6%.

The previous offer of 0.35 of a Delhaize share for every share in Delhaize America devaluated the US company, and was not enough to sway the minority shareholders who control 55% of the equity and 45% of the voting rights. Now, however, they have been convinced by an opportunity to gain some ready cash when Delhaize repurchases 10% of its stock for €400m and a deal which provides 0.40 of a share in the parent company for every share in Delhaize America.

In addition, Delhaize has offered a full 2000 dividend for Delhaize shareholders if the deal is completed by May, when the next annual meeting is held.