Wednesday, May 23, 2007
Amsterdam, – Ahold today announced a proposal to amend its articles of association to allow for a capital repayment and reverse stock split. This follows the announcement on March 22, 2007, of a proposal to return €3 billion to shareholders. Ahold will make the proposal at an Extraordinary General Meeting of Shareholders to be held on June 19, 2007 in Zaandam, The Netherlands.
Ahold has conducted an extensive review of the ways to return €3 billion to shareholders and has concluded that within the Dutch regulatory environment the most expeditious method is a capital repayment and reverse stock split.
The adjustments in the nominal capital and the reverse stock split will result in a repayment of capital to shareholders of €1.89 per common share, and a reduction in outstanding common shares. This reduction will reflect the amount of capital returned relative to the total market value of the outstanding common shares at the date that the amendment of the articles of association becomes effective. The repayment to shareholders and stock split will be subject to the customary filings with the trade registry, a two-month creditor objection period, and the closing of the sale of U.S. Foodservice.
The full agenda for the Extraordinary General Meeting of Shareholders is available on this website.