Ahold Plans Reverse Share Split, Capital Repayment

Dutch retailer Ahold said on Wednesday it plans a reverse share split as part of a proposal
to return 3 billion euros ($4.03 billion) to shareholders following the sale of a U.S. asset.

"The adjustments in the nominal capital and the reverse stock split will result in a repayment of capital to shareholders of 1.89 euros per common share, and a reduction in outstanding common shares," Ahold said in a statement.

The retailer has not yet determined the reverse share split ratio as "this is three months away from happening," a spokeswoman said. She said the ratio also depended on other factors such as finalising the sale of U.S. Foodservice.

Earlier this month, Ahold, the world's fourth-largest food retailer and foodservice group, said it had reached a deal to sell catering supplies unit U.S. Foodservice to Clayton, Dubilier & Rice and Kohlberg Kravis Roberts for $7.1 billion.

It will seek shareholders' approval for the sale at a general meeting on June 19.

Ahold said in March it would launch a 3-billion-euro share buyback, up from a previously announced 2 billion euros.

The retailer said the capital repayment and reverse stock split was the quickest method in the Dutch regulatory environment.

Ahold's stocks closed down 0.42% at 9.41 euros on Amsterdam's stock market.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Chad Devereaux examines bricks on Nov. 6, 2011, that fell from three sides of his in-laws' home in Sparks, Oklahoma, after two earthquakes hit the area in less than 24 hours.

    "Oklahoma is the most striking case, where the number of earthquakes is now at record levels," says a USGS official.

  • Private Jet

    Like migrating birds, private jet setters follow a basic instinct when it comes to their flight paths: They follow better weather.

  • Fake Apple Watches... can you tell the difference?

    CNBC's Eunice Yoon reports Apple Watch is officially available today but already fake watches are hitting the streets.

U.S. Video