Brussels, June 29, 2009 - Delhaize Group, the Belgian international food retailer, announced today that its wholly-owned subsidiary Delhaize "The Lion" Nederland B.V. ("Delned") has increased its offer price by EUR 3.50 to EUR EUR 34.00 per common registered share of Alfa-Beta Vassilopoulos ("Alfa-Beta").
In addition, Delhaize Group communicates that it has reached an agreement of acceptance at the increased tender price with the members of the Vassilopoulos family to tender 887 494 Alfa-Beta shares, or approximately 7% of the total, and with another important private shareholder to tender 630 000 Alfa-Beta shares, or approximately 5% of the total.
Pierre-Olivier Beckers, President and CEO of Delhaize Group, commented: "I am very pleased that the members of the founding family of Alfa-Beta support our voluntary tender offer. Delhaize Group has enjoyed a successful partnership with the Vassilopoulos family since our first investment in Alfa-Beta in 1992, and we are grateful for all their support over the years. We feel that the present agreement is a testimony of our common confidence in the future of Alfa-Beta."
Mr Charalambos Vassilopoulos commented on behalf of the Vassilopoulos family members: "The tender offer confirms the longstanding partnership of the Vassilopoulos family with Delhaize Group. Delhaize Group has been a great partner for Alfa-Beta and the family since it first invested in the company in 1992. We are convinced that they will continue to support Alfa-Beta going forward, that they will preserve the unique positioning of the company in the market and respect its values and, most importantly, its associates."
On May 18, 2009, Delhaize Group announced that Delned had filed with the Hellenic Capital Market Commission ("CMC") a voluntary tender offer for all the outstanding shares of Alfa-Beta not owned by Delned at a price of EUR 30.50 per Alfa-Beta share. Prior to commencement of the tender offer Delhaize Group owned approximately 65.27% of the outstanding shares of Alfa-Beta.
The information circular for the tender offer was approved by the CMC on June 5, 2009. On June 22, 2009 the Board of Directors of Alfa-Beta expressed its opinion, supported by its independent financial advisors, that the tender offer is fair from a financial point of view to the minority shareholders of Alfa-Beta.
Delned has today announced that it is seeking approval from the CMC for an increase by 11.5% in the tender offer price to EUR 34.00 per Alfa-Beta share. Compared with the trading level of Alfa-Beta prior to announcement of the tender offer, the increased tender offer price represents a premium of:
36.0% over the closing stock market price on May 15, 2009,
38.9% over the volume weighted average closing stock market price of the last three-month period ended on May 15, 2009, and
31.0% over the volume weighted average closing stock market price of the last six-month period ended on May 15, 2009.
All Alfa-Beta shares validly tendered by the closing date of the offer, July 9, 2009, will be entitled to receive the increased tender offer price of EUR 34.00 per share (net of applicable taxes). Delned intends to purchase Alfa-Beta shares on- or off-market at prices up to the increased offer price of EUR 34.00 per Alfa-Beta share. Delned does not intend to increase the tender offer price further.
As communicated on May 18, 2009, Delned intends to exercise its statutory right to acquire any remaining Alfa-Beta shares if Delned's interest in Alfa-Beta reaches at least 90% of the voting rights at closing of the tender offer. Upon reaching 95% of the voting rights in Alfa-Beta, Delned plans to initiate the process for delisting Alfa-Beta's shares from the Athens Exchange.
Alfa-Beta is a Greek food retail company which was established in 1969. At the end of the first quarter of 2009, Alfa-Beta's sales network consisted of 199 stores (of which 151 company-operated, 38 affiliated stores and 10 Cash-and-Carry stores). In 2008, Alfa-Beta's consolidated revenues amounted to approximately EUR 1 337 million and its net consolidated profit to approximately EUR 32.7 million. At the end of 2008, Alfa-Beta employed 7 612 people. Alfa-Beta has been listed on the Athens Exchange (BASIK) since 1990. Delhaize Group acquired approximately 45.42% of the capital of Alfa-Beta in 1992, and has bought shares in the open market since then to reach an interest of approximately 65.86% of the total Alfa-Beta's shares today.
Delhaize Group is a Belgian food retailer present in seven countries on three continents. At the end of the first quarter of 2009, Delhaize Group's sales network consisted of 2 670 stores. In 2008, Delhaize Group posted EUR 19 billion in revenues and EUR 467 million in net profit (Group share). At the end of 2008, Delhaize Group employed approximately 141 000 people. Delhaize Group's stock is listed on Euronext Brussels (DELB) and the New York Stock Exchange (DEG).