Friday, April 28, 2000
Ahold, a leading food provider, today announced that its global offering of approximately Euro 3 billion will consist of approximately Euro 2.0 $ 2.4 billion in common shares (or American Depositary Shares) and approximately Euro 0.6 $ 0.8 billion in convertible subordinated notes. In addition, Ahold has granted the syndicate banks 'green shoe' options, potentially increasing the total proceeds by a maximum of 15%. The preliminary prospectus will be available as of May 1, 2000.
Time table of the offering
Investors can subscribe to the common shares from Monday, May 1, 2000 through Monday, May 15, 2000 at the close of trading on the New York Stock Exchange. The subscription period for the convertible subordinated notes is set from Tuesday, May 9, 2000 through Monday, May 15, 2000 at close of trading on the New York Stock Exchange. Subscription may be closed earlier.
Proceeds to refinance recent expansion
The proceeds of the offering will be used to refinance debt incurred in connection with Ahold's purchase of its 50% interest in the ICA Group, the Scandinavian leading food retailer with over 3,100 stores and 1999 sales of Euro 6.6 billion and partially refinance Ahold's acquisition of U.S. Foodservice, a leading food distributor in the US with net sales of USD 6.2 billion for fiscal year 1999.
Commitment from institutions
Several Dutch institutional investors have committed to buy, and will be allotted, in aggregate a minimum of 17,175,000 common shares up to a maximum of 24,175,000 common shares at the issue price in the offering. ICA Frbundet and Canica, partners with Ahold in the newly formed Scandinavian partnership, have committed to buy, and will be allotted, in the offering Ahold common shares at the issue price for an aggregate amount of Euro 300 million.
Issue price and conditions
Issue price of the new common shares and the final conditions for the convertible subordinated notes as well as the final size and composition of the offering will be announced on May 16, 2000. Allotment is expected on May 16, 2000. Payment and delivery are expected for May 19, 2000. The first dividend to which the purchasers of common shares in the global offering will be entitled is the interim dividend, if any, in respect of 2000, which Ahold would customarily pay in September 2000. Currently outstanding Ahold common shares will trade ex dividend on May 18, 2000.
The convertible subordinated notes in Euro will mature in 5 years and are convertible for the full period at the conversion rate and under conditions as mentioned in the final prospectus. The indication of the coupon and conversion premium will be announced May 9, 2000 at the opening of the subscription period for the convertible subordinated notes.
International syndicate
ABN AMRO Rothschild, Goldman Sachs International and Merrill Lynch International are the Joint Global Bookrunners for Ahold's global offering. In The Netherlands, Rabo Securities, ING Barings and Kempen & Co are co-managers of the offering.
Royal Ahold
Royal Ahold is a rapidly growing international food provider. In 1999, the company operated 4,000 stores in the US, Europe, Latin America and Asia with sales of Euro 33.6 billion and net earnings of Euro 752 million. Ahold services over 30 million customers every week.