GO
Loading...

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

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video